What rights are Devon Creek franchisees and their principals waiving in the general release?
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, when executing the Franchise Agreement (or Multi-Unit Development Agreement), the franchisee (or developer) and any principal, individually and on behalf of their heirs, legal representatives, successors, and assigns, release and discharge Devon Creek Franchise Group, LLC, Licensor, and their associated entities from all claims, demands, and judgments. This release pertains to any statements, conduct, claims, or agreements made prior to the date of the Franchise Agreement (or Multi-Unit Development Agreement).
Specifically, this waiver includes all claims, whether known or unknown, suspected or unsuspected, arising under franchise, securities, tax, or antitrust laws of the United States or any state or territory. However, there is an exception: the release does not apply to claims arising from representations made by Devon Creek in its Franchise Disclosure Document received by the franchisee (or developer).
In practical terms, this means a prospective Devon Creek franchisee is giving up their right to sue Devon Creek for anything that happened or was said before the signing of the franchise agreement, except for misrepresentations made in the FDD itself. This is a significant commitment, as it limits the franchisee's legal recourse against the franchisor for past actions. Franchisees should carefully review all documents and communications with Devon Creek prior to signing the agreement to ensure they are comfortable with this release. It is common practice for franchisors to include general releases in their franchise agreements to protect themselves from potential legal claims based on prior dealings or understandings.