Who are the 'Released Parties' from claims in the 1 800 Packouts franchise agreement release?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Release by Franchisee, Transferee, and Guarantors. Franchisee and Transferee (on behalf of themselves and their parents, subsidiaries, and affiliates and their respective past and present officers, directors, shareholders, managers, members, agents, and employees, in their corporate and individual capacities), and Guarantors (on behalf of themselves and their respective heirs, representatives, successors and assigns) (collectively, the "Releasors") freely and without any influence forever release (i) Franchisor, (ii) Franchisor's past and present officers, directors, shareholders, managers, members, agents, and employees, in their corporate and individual capacities, and (iii) Franchisor's parent, subsidiaries, and affiliates and their respective past and present officers, directors, shareholders, managers, members, agents, and employees, in their corporate and individual capacities (collectively, the "Released Parties"), from any and all claims, debts, demands, liabilities, suits, judgments, and causes of action of whatever kind or nature, whether known or unknown, vested or contingent, suspected or unsuspected (collectively, "Claims"), which any Releasor ever owned or held, now owns or holds, or may in the future own or hold, including, without limitation, claims arising under federal, state, and local laws, rules, and ordinances and claims arising out of, or relating to, the Franchise Agreement and all other agreements between any Releasor and Franchisor or Franchisor's parent, subsidiaries, or affiliates, arising out of, or relating to any act, omission or event occurring on or before the date of this Release, unless prohibited by applicable law.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the "Released Parties" in the general release executed by the franchisee, transferee, and guarantors include several entities associated with the franchisor. Specifically, the released parties are 1 800 Packouts Franchisor, its past and present officers, directors, shareholders, managers, members, agents, and employees in both their corporate and individual capacities. Additionally, the released parties encompass 1 800 Packouts's parent company, subsidiaries, and affiliates, along with their respective past and present officers, directors, shareholders, managers, members, agents, and employees in their corporate and individual capacities.
This broad definition means that a franchisee, when signing the release, agrees to waive any claims against a wide range of individuals and entities connected to 1 800 Packouts. This includes not only the company itself but also its leadership, staff, and related corporate entities. The release covers all claims, debts, demands, liabilities, suits, judgments, and causes of action, whether known or unknown, vested or contingent, suspected or unsuspected, arising under federal, state, and local laws, rules, and ordinances. It also includes claims arising out of or relating to the Franchise Agreement and other agreements between the franchisee and 1 800 Packouts or its affiliates, for any act, omission, or event occurring on or before the date of the release.
However, it's important to note that this release may not apply to claims arising under certain state franchise laws, such as the Washington Franchise Investment Protection Act, chapter 19.100 RCW, or the rules adopted thereunder. Furthermore, riders to the franchise agreement for use in states like Maryland, North Dakota, and Minnesota may include additional stipulations that limit the scope of the general release to the extent prohibited by their respective franchise laws. Therefore, prospective franchisees should carefully review the specific terms of the release and any applicable state-specific riders to understand their rights and obligations fully.
It is also important to note that the franchisee, transferee, and guarantors accept the risk that the facts related to the release may change or be different from what they currently know or believe to be true. Despite this risk, they agree that the release remains effective and is not subject to termination or rescission due to any such differences in facts. This underscores the importance of conducting thorough due diligence before signing the release, as its terms are binding even if new information comes to light later on.