What claims must be released by a Chicken Guy franchisee in the general release required for renewal?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) Franchisee, all individuals who executed this Agreement and all guarantors of Franchisee's obligations must execute a general release and a covenant not to sue, in a form satisfactory to Chicken Guy, of any and all claims against Chicken Guy and its affiliates and their respective past and present officers, directors, shareholders, agents and employees, in their corporate and individual capacities, including, without limitation, claims arising under federal, state and local laws, rules and ordinances, and claims arising out of, or relating to, this Agreement, any other agreements between Franchisee and Chicken Guy or its affiliates and Franchisee's operation of the Franchised Restaurant and all other restaurants operated by Franchisee that are franchised by Chicken Guy or its affiliates.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, to renew their franchise agreement, a franchisee must execute a general release and covenant not to sue. This release covers any and all claims against Chicken Guy, its affiliates, and their respective officers, directors, shareholders, agents, and employees. This includes claims arising under federal, state, and local laws, rules, and ordinances.
The release extends to claims related to the franchise agreement itself, any other agreements between the franchisee and Chicken Guy or its affiliates, and the franchisee's operation of the franchised restaurant. It also encompasses claims from all other restaurants operated by the franchisee that are franchised by Chicken Guy or its affiliates.
This requirement is a standard practice in franchising, intended to prevent future litigation and ensure a clean break or continuation of the relationship. However, it is important for prospective Chicken Guy franchisees to understand the scope of this release and consult with legal counsel to assess its implications. The franchisee should be aware of any existing or potential claims they may have against Chicken Guy before signing the release, as it could bar them from pursuing those claims in the future.