Does the release provided by the franchisee to Dickeys Barbecue Pit include acts of negligence?
Dickeys_Barbecue_Pit Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee hereby releases and forever discharges Dickey's, any parent, subsidiary, related entity, shareholder, and affiliate of Dickey's, its respective officers, directors, members, employees, agents, contractors and its respective successors, assigns, heirs and personal representatives (the "Released Parties") from any and all claims, demands, rights and causes of action of any kind that Franchisee now has or will have in the future, whether known or unknown, arising out of the offer, sale, administration, performance, default, and/or termination of the Franchise Agreement, including any claims or causes of action arising out of alleged misrepresentations, fraud, breaches of contract (based upon implied, express, estoppel, waiver, or alternative theories of contractual obligation), negligence, or breach of any alleged special, trust, agency or fiduciary relationship (if any), whether asserted or proposed to be asserted by way of claim, setoff, affirmative defense, counterclaim, cross-claim or third party claim.
THIS RELEASE EXPRESSLY INCUDES, BUT IS NOT LIMITED TO, ANY ACT OR OMISSION OF NEGLIGENCE, FRAUD, MISREPRESENTATIONS, BREACH OF FIDUCIARY DUTIES, BREACH OF WARRANTIES, BREACH OF CONTRACT, AND ANY EXTRA-CONTRACTUAL CLAIMS COMMITTED OR ALLEGEDLY COMMITTED BY THE RELEASED PARTIES, PROVIDED, HOWEVER, THAT NOTHING CONTAINED IN THIS RELEASE IS INTENDED TO DISCLAIM OR REQUIRE FRANCHISEE TO WAIVE RELIANCE ON ANY REPRESENTATION THAT DICKEY'S MADE IN THE FRANCHISE DISCLOSURE DOCUMENT THAT DICKEY'S PROVIDED TO FRANCHISEE.
Source: Item 22 — CONTRACTS (FDD pages 95–96)
What This Means (2024 FDD)
According to Dickeys Barbecue Pit's 2024 Franchise Disclosure Document, the release provided by the franchisee does include acts of negligence. The franchisee releases Dickey's and related parties from any claims arising from the franchise agreement, including those resulting from negligence. This means a franchisee waives their right to sue Dickey's Barbecue Pit for losses caused by the company's negligence.
The release covers a broad range of potential claims, including those related to misrepresentations, fraud, breaches of contract, and breaches of fiduciary duty, in addition to negligence. This extensive waiver means franchisees bear the risk of many potential issues that could arise during the franchise relationship. However, the release does not require franchisees to waive reliance on any representations made by Dickey's in the Franchise Disclosure Document itself.
This type of release is common in franchise agreements. Prospective franchisees should carefully consider the implications of waiving their right to sue for negligence, as it could limit their ability to recover damages if Dickeys Barbecue Pit acts carelessly and causes them financial harm. It is advisable to consult with a legal professional to fully understand the scope and impact of this release before signing the franchise agreement.