Can All County shareholders, officers, directors, employees, and agents be released from claims?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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, franchisees and their owners agree to execute general releases of claims against All County and its shareholders, officers, directors, employees, agents, successors, and assigns. These releases must be in a form satisfactory to All County. However, any general release required in the Franchise Agreement as a condition of renewal, sale, assignment, or transfer does not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
This means that as a condition of certain events like renewal, sale, or transfer of the franchise, All County requires franchisees to sign a release, giving up their right to make claims against All County and its related parties. This is a significant point for prospective franchisees to consider. By signing such a release, the franchisee potentially gives up rights to sue All County, which could be detrimental if disputes arise in the future.
However, the FDD also states that this release does not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. This provides some protection to franchisees, specifically concerning legal rights granted under Maryland franchise law. It is important to note that this exception is specific to Maryland law and may not extend to other states.
Prospective franchisees should carefully review the release document with a legal professional to fully understand the scope of claims they are waiving and the implications of signing such a release. They should also be aware of the specific protections, if any, afforded by franchise laws in their state, as the Maryland exception may not be universally applicable.