Who is released from claims by the franchisee under the Ledgers Franchise Agreement?

According to the 2025 Ledgers Franchise Disclosure Document, by executing the Franchise Agreement, the franchisee releases Ledgers, including its past and present employees, agents, members, officers, and directors, as well as any parent, subsidiary, and affiliated entities, along with their respective past and present employees, agents, members, officers, and directors, from any and all claims arising prior to the date of the agreement. This release extends to the franchisee's heirs, legal representatives, successors, assigns, and each assignee of the agreement.

This means that a new Ledgers franchisee waives their right to sue Ledgers for any issues that occurred before the franchise agreement was signed. However, there is a significant exception: the release does not apply to any claims arising from representations made in the Franchise Disclosure Document itself. This protects the franchisee from misleading information provided by Ledgers in the FDD.

It is important for prospective Ledgers franchisees to carefully review the Franchise Disclosure Document and raise any concerns or discrepancies before signing the Franchise Agreement. This ensures that they retain their rights to address any misrepresentations made by Ledgers in the FDD. Franchisees should also be aware of state-specific addenda that may modify these release provisions, such as those mentioned for Maryland, to fully understand their rights and obligations.