What is the effect of the general release on future claims against All County?
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.
20.4.7. Approval. We have approved the material terms and conditions of such transfer and determined that the price and terms of payment will not adversely affect the transferee's operation of the Business.
20.4.8. Priority. If you or your owners finance any part of the sale price of the transferred interest, you and/or your owners have agreed that all of the transferee's obligations pursuant to any promissory notes, agreements or security interests that you or your owners have reserved in the Business are subordinate to the transferee's obligation to pay Royalties, Advertising Fund contributions and other amounts due to us and otherwise to comply with this Agreement.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, franchisees may be required to execute a general release of claims against All County and its related parties as a condition of renewal, sale, assignment, or transfer of the franchise. This release, in a form satisfactory to All County, covers any and all claims against All County, its shareholders, officers, directors, employees, and agents.
This means that if a franchisee signs a general release, they are giving up their right to sue All County for any past, present, or future issues, with a notable exception. The FDD states 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 requirement is fairly common in franchising, as it protects the franchisor from potential legal issues arising from past actions. However, franchisees should carefully consider the implications of signing such a release, as it could prevent them from pursuing legitimate claims against All County in the future, except under Maryland law. It is advisable for prospective franchisees to seek legal counsel to fully understand the scope and impact of the general release before signing the Franchise Agreement.