Is a general release required when transferring an Afuri Ramen Dumpling franchise, and who must execute it?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
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If permitted by applicable law, you and your owners, members, partners, officers, and directors will execute a general release in our favor.
The release must be in a form we prescribe, following applicable law, to release any claims you may have against us and our representatives, subsidiaries and affiliates and our officers, directors, attorneys, shareholders and employees in their corporate and individual capacities.
This will include claims arising under federal, state and local laws, rules and ordinances arising out of, or connected with, the offer, sell and performance of this Agreement or any other agreement between the parties.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, a general release is required from the franchisee and their owners, members, partners, officers, and directors when transferring a franchise, if permitted by applicable law. This release must be in a form prescribed by Afuri Ramen Dumpling, following applicable law.
The release serves to protect Afuri Ramen Dumpling from any claims the franchisee may have against them. It covers claims arising under federal, state, and local laws, rules, and ordinances related to the offer, sale, and performance of the Franchise Agreement or any other agreement between the parties. This is a standard practice in franchising to ensure a clean break and prevent future legal issues after a transfer.
The general release extends to Afuri Ramen Dumpling's representatives, subsidiaries, and affiliates, as well as their officers, directors, attorneys, shareholders, and employees in both their corporate and individual capacities. The franchisee is responsible for ensuring that all relevant parties on their side execute the release to complete the transfer process.