What claims are franchisees of Checkersrallys releasing the franchisor from prior to signing the agreement?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
18.14 Franchisee's Release. To the full extent permitted by applicable law, Franchisee, for itself and on behalf of its Affiliates, and their respective shareholders, directors, officers, limited liability company members, managers and employees, and their respective successors and assigns, and on behalf of the Franchisee's Owners, hereby (i) releases and forever discharges Franchisor and its Affiliates, and their respective directors, officers, employees, agents, representatives and attorneys, and their respective successors and assigns, from any and all claims, demands and causes of action, whether known or unknown, of any kind or nature, absolute or contingent, if any at law or in equity, arising prior to or on the date you sign this Agreement, and (ii) agrees that none of them will institute any litigation or other legal action or proceeding, at law or in equity, against Franchisor or its affiliates and their directors, officers, employees, agents, representatives and attorneys, and their respective successors and assigns, directly or indirectly, relating to any claim or demand released under this Section 18.14. Franchisee shall take whatever actions are necessary or appropriate to carry out the terms of this release and covenant not to sue upon Franchisor's request. Notwithstanding the foregoing, nothing in this Agreement shall disclaim or require you to waive reliance on any representation we made in our Franchise Disclosure Document (including any of that document's exhibits and amendments) delivered to you, your Owners, Affiliates or representatives. This Section 18.14 shall survive the expiration or termination of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees release Checkersrallys from all known and unknown claims, demands, and causes of action that arise before or on the date the franchise agreement is signed. This release extends to Checkersrallys, its affiliates, and their respective directors, officers, employees, agents, representatives, and attorneys, as well as their successors and assigns. The franchisee also agrees not to institute any litigation or legal action against Checkersrallys relating to any claim or demand released under this section.
This means that a prospective Checkersrallys franchisee is waiving their right to sue Checkersrallys for any issues that occurred before the franchise agreement was signed. This could include disputes over preliminary negotiations, promises made during the sales process, or any other grievances. However, the agreement specifies that franchisees are not waiving reliance on any representations made by Checkersrallys in the Franchise Disclosure Document (FDD) itself, including its exhibits and amendments.
This type of release is common in franchise agreements. It aims to provide Checkersrallys with legal protection from potential lawsuits based on past events. Franchisees should carefully review the FDD and any related documents before signing the agreement to ensure they are not unknowingly waiving any important rights or claims. It is advisable for prospective franchisees to seek legal counsel to fully understand the implications of this release and how it may affect their rights.