factual

In the All States M.E.D. Franchise Agreement's General Release, what is the effect of the Releasor's execution of a successor Franchise Agreement?

All_States_M_E_D Franchise · 2024 FDD

Answer from 2024 FDD Document

Agreement will not violate any other agreement or commitment to which Franchisee or any holder of a legal or beneficial interest in Franchisee is a party.

IN WITNESS WHEREOF the parties hereto, intending to be legally bound hereby have duly executed this Agreement.

ALL STATES M.E.D. FRANCHISING, LLC [FRANCHISEE]
By: By:
Print Name: Print Name:
Title: Title:

SCHEDULE 1 TO THE FRANCHISE AGREEMENT GENERAL RELEASE

THIS RELEASE is made and given by
, ("Releasor") with reference to the
following facts:
1. franchise agreements. Releasor and All States M.E.D. Franchising, LLC (Releasee) are parties to one or more
2. The following consideration is given:
the execution by Releasor of a successor Franchise Agreement or other
renewal documents renewing the franchise (the "Franchise"); or
Releasor's consent to Releasee's transfer of its rights and duties under the
Franchise Agreement; or
Releasor's consent to Releasee's assumption of rights and duties under the
Franchise Agreement; or
[insert description]
    1. 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.
    1. THIS IS A SPECIFIC RELEASE GIVING UP ALL RIGHTS WITH RESPECT TO THE TRANSACTIONS OR OCCURRENCES THAT ARE BEING RELEASED UNDER THIS AGREEMENT.

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 execution of a successor Franchise Agreement by the Releasor (franchisee) is considered as consideration for the release. This means that by signing a new franchise agreement or renewal documents, the franchisee is providing something of value in exchange for the release of claims. The other forms of consideration are the Releasor's consent to Releasee's transfer of its rights and duties under the Franchise Agreement, or the Releasor's consent to Releasee's assumption of rights and duties under the Franchise Agreement.

Specifically, the franchisee and all their guarantors, members, officers, directors, employees, agents, successors, assigns, and affiliates fully and finally release and forever discharge All States M.E.D., its past and present agents, employees, officers, directors, members, franchisees, successors, assigns, and affiliates from any and all claims, actions, causes of action, contractual rights, demands, damages, costs, loss of services, expenses and compensation which the franchisee could assert against the released parties up through and including the date of the release.

This release includes giving up all rights with respect to the transactions or occurrences that are being released under the agreement. However, this release does not apply to any liabilities arising under specific state franchise laws such as the California Franchise Investment Law, the California Franchise Relations Act, Indiana Code, the Maryland Franchise Registration and Disclosure Law, Michigan Franchise Investment Law, Minnesota Franchise Act, North Dakota franchise laws, the Rhode Island Investment Act, and the Washington Franchise Investment Protection Act. Franchisees in North Dakota are not required to sign a general release upon renewal of the franchise agreement.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.