What is the franchisee's obligation regarding assignment of claims when signing the Checkersrallys general release?

According to the 2025 Checkersrallys Franchise Disclosure Document, when signing a general release, franchisees agree that they have not assigned any of the claims released by the paragraph to any individual or entity who is not bound by this paragraph. This means the franchisee confirms they haven't given anyone else the right to pursue the same claims they are releasing as part of the agreement. This ensures that Checkersrallys is protected from dealing with multiple parties pursuing the same issues.

This requirement is part of a broader release and covenant not to sue, where the franchisee agrees to release Checkersrallys from any and all claims, damages, demands, causes of action, suits, liabilities, and agreements, whether known or unknown, related to their relationship with Checkersrallys. The franchisee also promises not to sue Checkersrallys on any of the released claims. This release covers the franchisee, their successors, heirs, and affiliated entities.

However, the FDD also notes some exceptions to this general release. For example, in Maryland, the release will not apply to the extent prohibited by the Maryland Franchise Registration and Disclosure Law, and franchisees may still commence a lawsuit against Checkersrallys in Maryland for claims arising under that law, subject to arbitration obligations. Similarly, in New York, the release does not waive any rights or causes of action arising from the provisions of Article 33 of the General Business Law of the State of New York. These exceptions ensure that franchisees retain certain legal rights despite signing the general release.

Prospective franchisees should carefully review the general release and any state-specific addenda to understand the full scope of the claims they are waiving and the rights they are retaining. It is advisable to consult with an attorney to fully understand the implications of signing such a release, especially considering the various state laws that may affect its enforceability.