What is the condition regarding a general release required for an All County franchise transfer?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.4.6. General Release. You (and your transferring owners) have executed a general release, in form satisfactory to us, of any and all claims against us and our shareholders, officers, directors, employees and agents.
Any general release required in the Franchise Agreement as a condition of renewal, sale, and/or assignment or transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
- 23.6.9. Releases. You and your owners agree to execute general releases, in form satisfactory to us, of any and all claims against us and our shareholders, officers, directors, employees, agents, successors and assigns.
Any general release required in the Franchise Agreement as a condition of renewal, sale, and/or assignment or transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, as a condition of transferring your franchise, you (and your transferring owners) must execute a general release. This release must be in a form that is satisfactory to All County, and it must cover any and all claims against All County and its shareholders, officers, directors, employees, and agents. This means that as part of the transfer process, you will be required to sign a document releasing All County from any potential legal claims you might have against them.
This requirement is fairly standard in franchising, as it protects the franchisor from future litigation related to the franchise agreement or the operation of the business. However, the FDD also notes an important exception: any general release required as a condition of transfer will not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This means that even if you sign a general release, you still retain your rights under Maryland franchise law.
Additionally, the FDD states that you and your owners must also agree to execute general releases of any and all claims against All County and its shareholders, officers, directors, employees, agents, successors, and assigns when selling the assets of the business. This is in addition to the general release required for the transfer of the franchise agreement itself. It is important to carefully review the terms of the general release with an attorney to understand the full scope of the claims you are waiving.