What loss, damage, and liability are the franchisee and owners releasing Checkersrallys from in consideration of Checkersrallys' acceptance of the premises?
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, the franchisee, on behalf of themselves, their affiliates, shareholders, directors, officers, members, managers, employees, successors, and assigns, including the franchisee's owners, releases Checkersrallys from all claims, demands, and causes of action, whether known or unknown, that arise before or on the date the Franchise Agreement is signed. This release covers all types of claims, whether based in law or equity, and whether absolute or contingent.
Furthermore, the franchisee agrees not to initiate any litigation or legal action against Checkersrallys or its affiliates, including their directors, officers, employees, agents, representatives, attorneys, successors, and assigns, either directly or indirectly, concerning any claim or demand that is released under this section of the agreement. The franchisee is obligated to take necessary actions to uphold the terms of this release and agrees not to sue Checkersrallys upon request.
However, the agreement specifies that nothing within it requires the franchisee to waive reliance on any representation made by Checkersrallys in its Franchise Disclosure Document, including any exhibits and amendments. This section of the agreement regarding the franchisee's release and covenant not to sue survives the expiration or termination of the Franchise Agreement.
This comprehensive release is a standard practice in franchising, designed to protect Checkersrallys from potential liabilities based on past events or information available up to the signing date. Prospective franchisees should carefully review the Franchise Disclosure Document and seek legal counsel to fully understand the scope and implications of this release before signing the agreement.