What document contains representations made to the Devon Creek franchisee that are not disclaimed by the franchise agreement?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
EXECUTING THE FRANCHISE AGREEMENT (OR MULTI-UNIT DEVELOPMENT AGREEMENT), FRANCHISEE (OR DEVELOPER) AND ANY PRINCIPAL, INDIVIDUALLY AND ON BEHALF OF FRANCHISEE'S (OR DEVELOPER'S) AND SUCH PRINCIPAL'S HEIRS, LEGAL REPRESENTATIVES, SUCCESSORS AND ASSIGNS. HEREBY FOREVER RELEASE AND DISCHARGE DEVON CREEK FRANCHISE GROUP, LLC, LICENSOR, AND ANY OF THE ABOVE'S PARENT COMPANY, SUBSIDIARIES, DIVISIONS, AFFILIATES, SUCCESSORS, ASSIGNS AND DESIGNEES, AND THE FOREGOING ENTITIES' DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, SHAREHOLDERS, SUCCESSORS, DESIGNEES AND REPRESENTATIVES FROM ANY AND ALL CLAIMS, DEMANDS AND JUDGMENTS RELATING TO OR ARISING UNDER THE STATEMENTS. CONDUCT, CLAIMS OR ANY OTHER AGREEMENT BETWEEN THE PARTIES EXECUTED PRIOR TO THE DATE OF THE FRANCHISE AGREEMENT (OR MULTI-UNIT DEVELOPMENT AGREEMENT), INCLUDING, BUT NOT LIMITED TO, ANY AND ALL CLAIMS, WHETHER PRESENTLY KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, ARISING UNDER THE FRANCHISE, SECURITIES, TAX OR ANTITRUST LAWS OF THE UNITED STATES OR OF ANY STATE OR TERRITORY THEREOF, THIS RELEASE SHALL NOT APPLY TO ANY CLAIMS ARISING FROM REPRESENTATIONS MADE BY FRANCHISOR IN FRANCHISOR'S FRANCHISE DISCLOSURE DOCUMENT RECEIVED BY FRANCHISEE (OR DEVELOPER).
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, the release signed by the franchisee does not apply to claims arising from representations made by Devon Creek in its Franchise Disclosure Document (FDD). This means that while the franchisee generally releases Devon Creek from claims related to prior agreements or statements, this release does not cover misrepresentations made within the FDD itself.
This is an important protection for the franchisee. The FDD is a key document that provides potential franchisees with information needed to make an informed investment decision. If Devon Creek makes false or misleading statements in the FDD, the franchisee retains the right to bring claims based on those misrepresentations, despite signing a general release. This ensures that Devon Creek is accountable for the accuracy of the information it provides to prospective franchisees.
This clause is beneficial for prospective Devon Creek franchisees because it allows them to rely on the information presented in the FDD. Franchisees are still responsible for conducting their own due diligence and seeking professional advice, but this provision offers an additional layer of security against potential misrepresentations by Devon Creek in the disclosure document.