What is the scope of the claims released by a franchisee in the Checkersrallys general release?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
10.14 Area Franchisee's Release. To the full extent permitted by applicable law, Area 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 Area 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 10.14. Area 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 10.14 shall survive the expiration or termination of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, the scope of claims released by an Area Franchisee is comprehensive, but with some limitations. To the full extent permitted by law, the Area Franchisee releases Checkersrallys and its affiliates from all claims, demands, and causes of action, whether known or unknown, arising before or on the date of signing the agreement. This release extends to the Area Franchisee's affiliates, shareholders, directors, officers, members, managers, employees, successors, and assigns. The Area Franchisee also agrees not to institute any litigation or legal action against Checkersrallys or its affiliates related to any claim released under this section.
However, this release does not disclaim or require a waiver of reliance on any representation made by Checkersrallys in its Franchise Disclosure Document, including exhibits and amendments. This ensures that franchisees retain their rights concerning information provided by Checkersrallys during the franchise sales process. The release and covenant not to sue survive the expiration or termination of the Area Franchise Agreement.
For franchisees in Maryland and New York, there are additional stipulations. In Maryland, the general release required for renewal or transfer does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. Similarly, in New York, the release is subject to the provisions of Article 33 of the General Business Law of the State of New York, ensuring that franchisees retain all rights and causes of action arising from that law. These state-specific provisions provide additional protection to franchisees by preventing the waiver of rights granted under state franchise laws.