What is the significance of the 'Effective Date' in relation to the release of claims for Jersey Mikes?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
Restaurant(s). You, on your own behalf and on behalf of the other Releasing Parties, further covenant not to sue any of the Franchisor Parties on any of the Claims released by this paragraph and represent that You have not assigned any of the Claims released by this paragraph to any individual or entity who is not bound by this paragraph.
- 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 Mikes Franchise Disclosure Document, the 'Effective Date' is the date upon which a release of claims becomes valid. This means that a franchisee, upon signing a release, agrees to waive any claims against Jersey Mikes up to and including that specific date. This includes any known or unknown claims that the franchisee may have against Jersey Mikes. The franchisee is also waiving rights under California Civil Code Section 1542, which states that a general release does not extend to claims that the releasing party does not know or suspect to exist at the time of executing the release.
Jersey Mikes requires that franchisees and their guarantors sign a general release of all claims against the franchisor and its affiliates. This release is in a form prescribed by Jersey Mikes. The franchisee acknowledges that they have had the opportunity to consult with a lawyer about the release, indicating the importance of understanding the implications of signing such a document. The release also specifies that it is to be construed under the laws of New Jersey, except for its conflict of law rules, and any disputes will be resolved under the procedures established in the franchise agreement.
For a prospective Jersey Mikes franchisee, the 'Effective Date' is a critical point in time. It represents the cutoff for any claims they might have against the franchisor. Before signing any release, a franchisee should carefully consider whether they have any existing or potential claims against Jersey Mikes. Consulting with an attorney is highly recommended to fully understand the rights being waived and the implications of the release. This ensures that the franchisee is making an informed decision and protecting their interests.