Does the Ledgers Franchise Agreement release Ledgers from claims arising prior to the agreement date?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
10.8. Release of Prior Claims
By executing this Agreement, the Franchisee, on behalf of yourselves and your heirs, legal representatives, successors and assigns, and each assignee of this Agreement, forever releases and discharges us, our past and present employees, agents, members, officers, and directors, including any of our parent, subsidiary and affiliated entities, their respective past and present employees, agents, members, officers, and directors, from any and all Claims arising prior to the date of this Agreement. However, this release does not apply to any Claim you may have arising from representations in our Franchise Disclosure Document.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the Franchise Agreement includes a clause regarding the release of prior claims. By signing the agreement, the franchisee agrees to release Ledgers, its employees, agents, members, officers, and directors from any claims arising before the agreement's date. This release extends to the franchisee's heirs, legal representatives, successors, and assignees.
However, there is a significant exception to this release. The release does not apply to any claims the franchisee may have arising from representations made in Ledgers' Franchise Disclosure Document itself. This means that if a franchisee believes they were misled by information presented in the FDD, they are not prevented from pursuing a claim based on those misrepresentations, even after signing the Franchise Agreement.
It's important for prospective Ledgers franchisees to carefully review the Franchise Disclosure Document and understand their rights before signing the Franchise Agreement. They should consult with an attorney to fully understand the implications of the release of prior claims and the exceptions to it. Franchise agreements often contain such releases, but the specific terms and exceptions can vary, so franchisees should be aware of what they are agreeing to.