What is the effect of the release on any claim released under Section 1 of 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, Section 11 outlines a general release. This release stipulates that the developer, along with their parent company, subsidiaries, affiliates, and their respective members, officers, directors, shareholders, agents, and employees, relinquish all claims against Chicken Guy, its parent company, subsidiaries, affiliates, and their respective officers, directors, shareholders, agents, and employees. This release covers all types of claims, whether known or unknown, vested or contingent, suspected or unsuspected, that the developer currently holds or may have held up to the date of the agreement.
The claims being released include, but are not limited to, those arising under federal, state, and local laws, rules, and ordinances. It also encompasses claims for contribution, indemnity, subrogation, and those arising from or relating to the agreement itself, other agreements between the parties, the sale of the franchise, and the development and operation of franchised restaurants.
However, the general release explicitly excludes any claims arising from representations made in Chicken Guy's Franchise Disclosure Document (FDD) or its exhibits. Furthermore, it does not impair or affect any claims that arise after the date of the agreement. This means that while the franchisee is releasing Chicken Guy from past and current claims, they retain the right to pursue claims based on misrepresentations in the FDD or for issues that occur after the agreement is signed.