Does the Devon Creek franchise agreement specify any limitations on claims asserted by the franchisee?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
sed herein; and it is understood that Franchisor does not warrant that such products will not be sold within the Franchisee's (or Developer's) Territory by others who may have purchased such products from Franchisor.
Initial
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).
| FRANCHISEE: | Initial PRINCIPAL: | |---------------------|--------------------| | By: | (Print Name) | | (Print Name, Title) | Date: | | Date: | PRINCIPAL: (Print Name) Date: |
ITEM 23: RECEIPT
A receipt in duplicate is attached to this Disclosure Document as Exhibit H. You should sign both copies of the receipt.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, the franchise agreement includes clauses that limit the claims a franchisee can assert against the franchisor. Specifically, upon executing the Franchise Agreement, the franchisee releases Devon Creek from all claims, demands, and judgments relating to any agreements or conduct prior to the date of the Franchise Agreement. This release covers a broad range of potential claims, including those arising under franchise, securities, tax, or antitrust laws. However, this release does not apply to claims arising from representations made by Devon Creek in its Franchise Disclosure Document.
Additionally, if a franchisee seeks to renew their franchise agreement, they must execute a general release of all claims they may have against Devon Creek and its related parties. This release encompasses all claims arising under any federal, state, or local law, rule, or ordinance.
These clauses are fairly standard in franchise agreements. Prospective Devon Creek franchisees should carefully review these provisions with legal counsel to understand the scope of the claims they are waiving and the potential impact on their legal rights. It is important to note the exception for claims arising from misrepresentations in the FDD, which provides some protection to the franchisee.