factual

Who are considered 'Releasing Parties' when releasing claims against Jersey Mikes?

Jersey_Mikes Franchise · 2025 FDD

Answer from 2025 FDD Document

  • Consistent with the previous introduction, You, on your own behalf and on behalf of your current and for mer parents, affiliates, and subsidiaries, and each such foregoing person's or entity's respective agents, spouses, heirs, principals, attorneys, owners, officers, directors, employees, representatives, predecessors, successors, and assigns (collectively, the "Releasing Parties"), hereby fully and forever unconditionally release and discharge Us and our current and former parents, subsidiaries, and affiliates, and our and each such foregoing entity's respective current and former owners, officers, directors, employees, managers, agents, representatives, predecessors, successors, and assigns (collectively, the "Franchisor Parties") of and from any and all claims, damages, demands, causes of action, suits, duties, liabilities, and agreements of every kind and nature whatsoever (collectively, "Claims"), whether at law or in equity, and known or unknown, which any of the Releasing Parties had, has, or may have had, in any way arising out of or relating to any relationship or transaction with any of the Franchisor Parties, however characterized or described, from the beginning of time to the Effective Date, including, without limitation, any and all Claims in any way arising out of or relating to the Franchise Agreement, Area Development Agreement, the relationship created by the Franchise Agreement and/or the Development Agreement, or the development, ownership, or operation of any and all of the Restaurant(s).

Source: Item 22 — CONTRACTS (FDD page 77)

What This Means (2025 FDD)

According to Jersey Mikes's 2025 Franchise Disclosure Document, the "Releasing Parties" include the franchisee. It also includes the franchisee's current and former parents, affiliates, and subsidiaries. The release extends to each of these entities' respective agents, spouses, heirs, principals, attorneys, owners, officers, directors, employees, representatives, predecessors, successors, and assigns.

This means that when a franchisee signs a release, they are not only releasing claims on their own behalf but also on behalf of a wide range of related individuals and entities. This could have significant implications if, for example, a franchisee's spouse or business partner later decides to pursue a claim against Jersey Mikes related to the franchise agreement. The release signed by the franchisee could prevent them from doing so.

It is important for prospective Jersey Mikes franchisees to carefully review the release and understand the full scope of who is included in the definition of "Releasing Parties." Franchisees should also consider consulting with an attorney to discuss the potential implications of signing such a broad release. This type of clause is relatively standard in franchise agreements, but the specific scope can vary, so understanding the details is crucial.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.