Does the release in Section 18.14 of the Checkersrallys franchise agreement survive the expiration or termination of the agreement?

According to Checkersrallys's 2025 Franchise Disclosure Document, Section 18.14 of the franchise agreement, which pertains to the franchisee's release of claims against Checkersrallys, explicitly survives the expiration or termination of the agreement. This means that even after the franchise agreement ends, the franchisee is still bound by the release, preventing them from pursuing any claims against Checkersrallys that arose prior to or on the date of signing the agreement.

This survival clause has significant implications for prospective franchisees. It essentially means that any potential legal issues or disputes that a franchisee might have with Checkersrallys must be addressed during the term of the franchise agreement. Once the agreement expires or is terminated, the franchisee loses the ability to bring a lawsuit against Checkersrallys regarding matters covered by the release.

Franchisees should carefully consider this clause and seek legal advice to fully understand its scope and implications. It is crucial to conduct thorough due diligence before signing the franchise agreement to identify any potential issues that could give rise to future claims. This includes reviewing the Franchise Disclosure Document, understanding the terms of the agreement, and assessing the overall business opportunity.

While such survival clauses are relatively common in franchise agreements, franchisees should be aware of their potential impact and negotiate terms where possible. Understanding the long-term implications of these clauses is essential for protecting their interests and mitigating potential risks.