Are there any exceptions to the covenant not to sue for Golden Krust Caribbean Restaurant franchisees?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
- **4.
Covenant Not to Sue.** Franchisee and Guarantors (on behalf of Releasors) covenant not to initiate, prosecute, encourage, assist, or (except as required by law) participate in any civil, criminal, or administrative proceeding or investigation in any court, agency, or other forum, either affirmatively or by way of cross-claim, defense, or counterclaim, against any person or entity released under Section 1 with respect to any Claim released under Section 1.
Source: Item 23 — RECEIPT (FDD pages 35–153)
What This Means (2024 FDD)
According to the 2024 Golden Krust Caribbean Restaurant Franchise Disclosure Document, franchisees and guarantors agree not to participate in any legal proceedings against those released under Section 1 of the release, with one exception. This covenant extends to civil, criminal, or administrative proceedings in any forum, whether initiated affirmatively or defensively, except as required by law.
This means that franchisees generally waive their right to sue Golden Krust Caribbean Restaurant or related parties regarding any claims covered by the release. However, there is an exception if a law requires participation in a legal proceeding. This exception acknowledges that certain legal obligations may override the covenant not to sue.
This clause is intended to protect Golden Krust Caribbean Restaurant from potential lawsuits related to the franchise agreement. Prospective franchisees should carefully review the scope of the release and understand the implications of waiving their right to sue, especially considering the exception for legally required participation in proceedings.