What is the condition regarding general releases upon voluntary termination of the All County franchise agreement within 365 days?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 22.1.1. Voluntary Termination Within 365 Days. Within three hundred sixty five (365) days of the Effective Date of the Agreement, you may elect to notify us in writing of your voluntarily election to terminate the Franchise Agreement. You acknowledge and agree that if you elect to voluntarily terminate the Agreement under this Section, then in reasonable and sufficient consideration of our costs and expenses incurred with you prior to you electing to terminate the Agreement and in allowing your voluntary termination of the Agreement, you must assign back to us in writing all franchise and other rights that you were granted under the Agreement with no other additional amounts payable from us to you. Additionally, you and your owners agree to comply in all respects with all the posttermination provisions of the Agreement, including, without limitation, the requirement that the 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, if a franchisee chooses to voluntarily terminate the Franchise Agreement within the first 365 days of its effective date, both the franchisee and their owners must execute general releases. These releases, in a form satisfactory to All County, waive any and all claims against All County and its related parties, including shareholders, officers, directors, employees, agents, successors, and assigns.
This requirement means that a franchisee considering early termination must be willing to relinquish any potential legal claims they might have against All County. This could include claims related to misrepresentation, breach of contract, or any other grievance arising from the franchise relationship. The franchisee should carefully consider this condition and consult with an attorney to fully understand the implications of signing a general release.
It's important to note that 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. This provides some protection to franchisees under Maryland law, ensuring that they do not waive rights related to franchise registration and disclosure violations in that state.