Who must execute the release and covenant not to sue for a Chicken Guy franchise renewal?

According to the 2025 Chicken Guy Franchise Disclosure Document, to renew a franchise agreement, the franchisee, all individuals who initially executed the franchise agreement, and all guarantors of the franchisee's obligations must execute a general release and a covenant not to sue. This release must be in a form satisfactory to Chicken Guy. The release covers any and all claims against Chicken Guy, its affiliates, and their respective past and present officers, directors, shareholders, agents, and employees in their corporate and individual capacities. This includes, but is not limited to, claims arising under federal, state, and local laws, rules, and ordinances. It also encompasses claims arising out of or relating to the franchise agreement, any other agreements between the franchisee and Chicken Guy or its affiliates, and the franchisee's operation of the franchised restaurant, other Chicken Guy restaurants operated by the franchisee, and all other restaurants operated by the franchisee that are franchised by Chicken Guy or its affiliates.

This requirement ensures that Chicken Guy is protected from potential legal claims by the franchisee and related parties upon renewal of the franchise agreement. By signing the release and covenant not to sue, the franchisee agrees to waive any existing or potential claims against Chicken Guy, providing the franchisor with legal certainty as they continue the franchise relationship. This is a fairly standard practice in franchising, as it aims to prevent future disputes based on past events or agreements.

For a prospective Chicken Guy franchisee, this means that before renewing their franchise agreement, they, along with anyone who initially signed the agreement or guaranteed their obligations, will need to sign a release of claims. Franchisees should carefully consider the implications of this release, as it waives their right to sue Chicken Guy for any claims, known or unknown, up to the date of the release. It is advisable for franchisees to seek legal counsel to fully understand the scope and impact of the release before signing it, ensuring they are not unknowingly giving up valuable legal rights.