Who benefits from and is bound by the release in the Chicken Guy franchise agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer (on behalf of itself and its parent, subsidiaries and affiliates and their respective past and present members, officers, directors, shareholders, agents and employees, in their corporate and individual capacities), all individuals who execute this Agreement and all guarantors of Developer's obligations under this Agreement (collectively "Releasors"), freely and without any influence, forever release and covenant not to sue Chicken Guy, its parent, subsidiaries and affiliates and their respective past and present officers, directors, shareholders, agents and employees (collectively "Releasees"), in their corporate and individual capacities, from any and all claims, demands, liabilities and causes of action of whatever kind or nature, whether known or unknown, vested or contingent, suspected or unsuspected (collectively "claims"), that any Releasor now owns or holds, or may at any time have owned or held, up to and including the date of this Agreement, including, without limitation, claims arising under federal, state and local laws, rules and ordinances, claims for contribution, indemnity and/or subrogation, and claims arising out of, or relating to this Agreement and all other agreements between any Releasor and any Releasee, the sale of a franchise to any Releasor, the development of any Franchised Restaurant and the development and operation of all other restaurants operated by any Releasor that are franchised by any Releasee. Notwithstanding any provision to the contrary in this Section 11, this General Release does not release any claims arising from representations made in Chicken Guy's Franchise Disclosure Document or its exhibits or otherwise impair or affect any claims arising after the date of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, the general release within the franchise agreement involves specific parties on both sides. The 'Releasors,' who are bound by the release and give up their rights to sue, include the Developer (encompassing its parent company, subsidiaries, affiliates, and their respective members, officers, directors, shareholders, agents, and employees), all individuals who sign the agreement, and any guarantors of the Developer's obligations.
On the other side, the 'Releasees,' who benefit from the release and are protected from lawsuits, are Chicken Guy, its parent company, subsidiaries, affiliates, and their respective past and present officers, directors, shareholders, agents, and employees. This release covers a broad range of potential claims, whether known or unknown, vested or contingent, up to the date of the agreement. These claims include those arising under federal, state, and local laws, as well as claims for contribution, indemnity, subrogation, and those related to the agreement itself, the sale of the franchise, and the development and operation of the franchised restaurant.
However, the general release does not apply to claims arising from representations made in Chicken Guy's Franchise Disclosure Document (FDD) or its exhibits. It also does not impair or affect any claims that arise after the date the agreement is signed. This means a franchisee still retains the right to bring action against Chicken Guy for misrepresentations in the FDD or for issues that occur after the agreement's effective date. This is a fairly standard clause in franchise agreements, intended to limit liability for past actions while preserving rights related to the FDD and future conduct.