Does the All States M.E.D. franchise agreement specify that the release includes past and present agents and employees?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
-
- Release- Franchisee and all of Franchisee's guarantors, members, officers, directors, employees, agents, successors, assigns and affiliates fully and finally release and forever discharge Releasee, its past and present agents, employees, officers, directors, members, Franchisees, successors, assigns and affiliates (collectively "Released Parties") from any and all claims, actions, causes of action, contractual rights, demands, damages, costs, loss of services, expenses and compensation which Franchisee could assert against Released Parties or any of them up through and including the date of this Release.
-
- THIS IS A SPECIFIC RELEASE GIVING UP ALL RIGHTS WITH RESPECT TO THE TRANSACTIONS OR OCCURRENCES THAT ARE BEING RELEASED UNDER THIS AGREEMENT.
-
- California Releasor- You represent and warrant that YOU EXPRESSLY WAIVE ANY AND ALL RIGHTS AND BENEFITS UNDER CALIFORNIA CIVIL CODE §1542, which provides as follows:
A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to the 2024 All States M.E.D. Franchise Disclosure Document, the franchise agreement includes a release provision that extends to the franchisor's past and present agents and employees. This means that when a franchisee signs the release, they are waiving their rights to bring claims against All States M.E.D. and its Released Parties, including its agents and employees. This release covers any claims, actions, or causes of action the franchisee might have against these parties up to the date of the release.
This requirement to provide a release is part of the conditions a franchisee must meet when transferring ownership of their franchise. Specifically, the franchisee must execute a general release of any and all claims against All States M.E.D., including its officers, directors, shareholders, managers, members, partners, owners, employees, and agents in their corporate and individual capacities. The transferee (buyer) must also provide a similar release to All States M.E.D.
It is important to note that this general release may not apply to liabilities arising under certain state franchise laws, such as those in California, Indiana, Maryland, Michigan, Minnesota, North Dakota, Rhode Island, and Washington. Furthermore, the North Dakota Addendum to the Franchise Agreement specifies that franchisees in North Dakota are not required to sign a general release upon renewal of the franchise agreement. Franchisees should carefully review the release and understand its implications, especially concerning potential future claims against All States M.E.D. or its associated parties.