What is the time frame for 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, attorney, agents 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 to and including the Effective Date, including, but not limited to, all claims related to any violations of federal and state franchise, relationship, and business opportunity laws.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, the release of claims in the Assignment of Area Development Agreement covers the period up to and including the Effective Date of the agreement. Specifically, the developer, guarantors, assignors, and assignees release Jersey Mike's and its affiliates from any claims, debts, liabilities, demands, obligations, costs, expenses, actions, and causes of action of every nature that they ever had against Jersey Mike's.
This release includes both known and unknown claims, whether vested or contingent. It encompasses claims arising directly or indirectly related to the Area Development Agreement, the entry into the Area Development Agreement, the execution, delivery, and performance of the Area Development Agreement, and the franchised business.
In practical terms, this means that a franchisee or developer who is assigning their rights is giving up any potential legal claims against Jersey Mike's that existed up to the effective date of the assignment. This is a significant legal commitment, and franchisees should carefully consider its implications and consult with an attorney before signing. The franchisee is giving up rights to claims even if they are currently unknown.