What agreements does the release in this document potentially relate to for a Jersey Mike's franchisee?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
j) Developer and its Affiliates and their respective Principals and Guarantors provide to Franchisor an unconditional, general release of all claims it may have against Franchisor, its Affiliates, and their respective officers, directors, shareholders, partners and employees; and
g.
Franchisee and Franchisee's guarantors have signed a general release, in a f orm prescribed by Franchisor, of any and all claims against Franchisor and its subsidiaries and Affiliates, and their respective officers, directors, agents, shareholders and employees.
Upon re turn of sa id amount, Franchisor shall be fully and forever released from any claims or causes of action which Franchisee or its guarantors may have had under to this Agreement.
- (c) The transferee provides Franchisor a waiver and release with respect to liability for any financial data, earnings claims, representations and other information Developer or its representatives provided the transferee;
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, there are several instances where a franchisee or developer may be required to sign a release. Specifically, in the context of transferring a Development Agreement or Franchise Agreement, the transferring party must provide Jersey Mike's with an unconditional, general release of all claims against the franchisor, its affiliates, and their respective officers, directors, shareholders, partners, and employees. This ensures that upon transfer, Jersey Mike's is free from any potential legal issues stemming from the previous developer's actions or agreements.
Additionally, when a franchisee seeks to renew their franchise agreement, they and their guarantors must sign a general release in a form prescribed by Jersey Mike's, which covers any and all claims against the franchisor, its subsidiaries, affiliates, and their respective personnel. This requirement is a condition of renewal, ensuring that the franchisee waives any existing claims as part of the renewal process. The FDD also mentions that upon return of a payment, Jersey Mike's shall be fully and forever released from any claims or causes of action which a franchisee or its guarantors may have under the agreement.
Furthermore, in the event of a transfer of a Development Agreement, the transferee must provide Jersey Mike's with a waiver and release regarding liability for any financial data, earnings claims, representations, or other information provided by the transferring developer or its representatives. This protects Jersey Mike's from disputes arising from information shared between the transferring and receiving parties during the transfer process. These releases and waivers are standard practice in franchising to mitigate potential legal liabilities and ensure a clean break or fresh start in the franchisor-franchisee relationship.