What agreements are related to the claims being released in the Jersey Mikes Assignment of Area Development Agreement?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
RELEASES. Developer, Guarantors, Assignor(s) and Assignee(s) jointly and severally release and forever discharge Company, its affiliates, and their respective heirs, successors, members, shareholders, partners, officers and directors, representatives, assigns, agents, attorneys, and employees, (collectively "Affiliates"), of and from any claims, debts, liabilities, demands, obligations, costs, expenses, actions and causes of action of every nature, character and description, known or unknown, vested or contingent, including without limitation, claims arising directly or indirectly related to (a) the Area Development Agreement and this Assignment Agreement (collectively the "Area Development Agreement"), (b) the entry into the Area Development Agreement, (c) the execution, delivery and performance of the Area Development Agreement, and (d) the Franchised Business, which Developer, Guarantors, Assignor(s) and Assignee(s) now own or hold or have at any time heretofore owned or held, or may at any time own or hold against Affiliates, arising prior
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, the claims released in the Assignment of Area Development Agreement relate directly or indirectly to several aspects of the franchise relationship. These include the Area Development Agreement itself and the Assignment Agreement. The release extends to claims connected to entering into the Area Development Agreement, as well as the execution, delivery, and performance of the Area Development Agreement.
Furthermore, the release covers claims related to the franchised business operated under the Area Development Agreement. This encompasses any claims, debts, liabilities, demands, obligations, costs, expenses, actions, and causes of action of every nature, known or unknown, that the developer, guarantors, assignors, and assignees may have against Jersey Mike's and its affiliates. The release applies to claims arising before or on the effective date of the Assignment Agreement.
This release includes, but is not limited to, all claims related to any violations of federal and state franchise, relationship, and business opportunity laws. The agreement explicitly states that all parties are releasing unknown claims and waiving rights under California Civil Code Section 1542 or similar statutes, acknowledging they may discover new claims or facts that could affect the release. This comprehensive release is a standard practice in franchise assignments to ensure a clean transfer of rights and responsibilities, protecting Jersey Mike's from potential future liabilities related to the prior developer's actions or agreements.