If a Ledgers franchisee has a claim against Ledgers arising before the date of the Franchise Agreement, is it released?
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's 2025 Franchise Disclosure Document, a franchisee generally releases Ledgers from claims arising before the date of the Franchise Agreement. Specifically, by signing the agreement, the franchisee releases Ledgers and its employees, agents, officers, and directors from any claims that occurred before the agreement's date. This release extends to the franchisee's heirs, legal representatives, successors, and assignees.
However, there is a significant exception: this release does not apply to claims arising from representations made in Ledgers's Franchise Disclosure Document itself. This means that if a franchisee believes they were misled by information presented in the FDD, they can still pursue a claim against Ledgers, even after signing the Franchise Agreement.
It's important for prospective Ledgers franchisees to carefully review the Franchise Disclosure Document and understand what rights they are waiving by signing the agreement. Franchisees should also be aware of the specific state laws that may affect the enforceability of these releases, as some states have franchise laws that protect franchisees from certain waivers or releases of liability. For example, the disclosure notes specific stipulations for franchisees in California and Maryland.