For Jersey Mike's, what is included in the definition of 'Releasing Parties' who are providing the release?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
- F.
Each of the Releasing Parties acknowledges that he, she or it is familiar with Section 1542 of the California Civil Code, which reads as follows:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITO® OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.
With respect to those claims being released hereunder, each of the parties acknowledges that he, she or it is releasing unknown claims and waives all rights he, she or it has or may have under California Civil Code Section 1542 or any other statute or common law principle of similar effect. Each of the parties acknowledges that he, she or it may hereafter discover claims or facts in addition to or different from those now known or believed to exist with respect to the subject matter of the claims being released hereunder, and which, if known or suspected at the time of entering into this Release, may have materially affected this Release. Nevertheless, each of the parties hereby waives any right, claim or cause of action that might arise as a result of such different or additional claims or facts. Each of the parties acknowledges and understands the significance and consequence of such release and such specific waiver of California Civil Code Section 1542.
- G. THIS RELEASE SHALL BE CONSTRUED UNDER THE LAWS OF NEW JERSEY, EXCEPT FOR I TS CONFLICT OF LAW RULES. ANY DISPUTES RELATING TO ITS ENFORCEMENT SHALL BE RESOLVED UNDER THE P ROCEDURES ESTABLISHED IN THE FRANCHISE AGREEMENT(S).
- H. This Release contains the entire agreement between You and Us relating to its subject matter. Neither We nor You are relying on any statements or representations other than those described in this Release and in the franchise disclosure document We provided to You. If any part of this Release is deemed to be un lawful or unenforceable, You and We intend that the rest of this Release will remain enforceable, to the extent permitted by law. All capitalized words not defined in this Release will have the same meaning as in the Franchise Agreement(s).
- I. You acknowledge that You had the opportunity to consult with a lawyer about this Release
You and We have signed this Release and want it to be effective on the Effective Date.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to the 2025 Jersey Mike's Franchise Disclosure Document, the release involves both 'You' and 'Us'. In this context, 'You' refers to the franchisee, while 'We' or 'Us' refers to Jersey Mike's. This indicates that both the franchisee and Jersey Mike's are providing releases to each other as part of the agreement.
This mutual release signifies that both parties are relinquishing certain claims or rights they may have against each other. The franchisee is releasing Jersey Mike's from potential liabilities, and conversely, Jersey Mike's is releasing the franchisee. This is a common practice in franchise agreements to ensure a clean break or resolution of potential disputes.
The FDD also mentions that each of the Releasing Parties acknowledges that he, she or it is familiar with Section 1542 of the California Civil Code, regarding a general release not extending to unknown claims. Each party is releasing unknown claims and waiving all rights under California Civil Code Section 1542 or any other similar statute or common law principle. This means that both parties are aware that they may later discover claims they are currently unaware of, but they are still agreeing to release those potential claims.
Prospective franchisees should carefully review the specific terms of the release with a legal professional to fully understand the scope of the claims being released and the implications of waiving rights under California Civil Code Section 1542. Understanding the release is crucial to assessing the risks and benefits of entering into a franchise agreement with Jersey Mike's.