Does the Ledgers franchise agreement specify that the release includes claims up to a certain date?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
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's 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 from any and all claims arising before the date of the agreement. This release extends to the franchisee's heirs, legal representatives, successors, and assignees, as well as Ledgers's past and present employees, agents, members, officers, and directors, including parent, subsidiary, and affiliated entities.
However, there is a significant exception to this release. It does not apply to any claims the franchisee may have arising from representations made in Ledgers's Franchise Disclosure Document itself. This means that if the franchisee believes they were misled by information provided in the FDD, they are not waiving their right to pursue those claims.
This clause is a standard legal protection for franchisors, limiting their liability for past actions. However, the exception for FDD misrepresentations provides some protection for franchisees. Prospective franchisees should carefully review the FDD and any other information provided by Ledgers before signing the agreement, and consult with an attorney if they have any concerns about the release or other terms of the agreement.