Who are considered 'Releasing Parties' in the Checkersrallys general release?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
Consistent with the previous introduction, you, on your own behalf and on behalf of your successors, heirs, executors, administrators, personal representatives, agents, assigns, partners, shareholders, members, directors, officers, principals, employees, and affiliated entities (collectively, the "Releasing Parties"), hereby forever release and discharge us and our current and former officers, directors, shareholders, principals, employees, agents, representatives, affiliated entities, successors, and assigns (collectively, the "Checkers Parties") from any and all claims, damages (known and unknown), demands, causes of action, suits, duties, liabilities, and agreements of any nature and kind (collectively, "Claims") that you and any of the other Releasing Parties now has, ever had, or, but for this document, hereafter would or could have against any of the Checkers Parties (1) arising out of or related to the Checkers Parties' obligations under the Franchise Agreement or (2) otherwise arising from or related to your and the other Releasing Parties' relationship, from the beginning of time to the date of your signature below, with any of the Checkers Parties. You, on your own behalf and on behalf of the other Releasing Parties, further covenant not to sue any of the Checkers Parties on any of the Claims released by this paragraph and represent that you have not assigned any of the Claims released by this paragraph to any individual or entity who is not bound by this paragraph.
We also are entitled to a release and covenant not to sue from your owners. By his, her, or their separate signatures below, your transferring owners likewise grant to us the release and covenant not to sue provided above.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the "Releasing Parties" in the general release include the franchisee and several affiliated individuals and entities. Specifically, the term encompasses the franchisee's successors, heirs, executors, administrators, personal representatives, agents, assigns, partners, shareholders, members, directors, officers, principals, employees, and affiliated entities.
This broad definition means that not only the franchisee themselves but also a wide range of related parties are bound by the release. This has significant implications for prospective franchisees, as it extends the scope of the release beyond just the individual signing the agreement. It is important for franchisees to understand that this release could affect the rights and potential claims of various individuals and entities associated with them.
The release covers any and all claims, damages (both known and unknown), demands, causes of action, suits, duties, liabilities, and agreements of any nature that the Releasing Parties have or may have against the "Checkers Parties." The Checkers Parties include Checkersrallys and their current and former officers, directors, shareholders, principals, employees, agents, representatives, affiliated entities, successors, and assigns. The franchisee also covenants not to sue any of the Checkers Parties on any of the released claims.
It is also important to note that in transactions governed by Maryland Franchise Registration and Disclosure Law, the release may not apply to the extent prohibited by that law. Additionally, Checkersrallys requires a release and covenant not to sue from the franchisee's owners, further extending the reach of the general release.