Does the General Release in the All States M.E.D. Franchise Agreement release past employees of the Releasee?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
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- 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.
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- The above Release shall not apply to any liabilities arising under the California Franchise Investment Law, the California Franchise Relations Act, Indiana Code § 23-2-2.5.1 through 23-2-2.7-7, the Maryland Franchise Registration and Disclosure Law, Michigan
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, the General Release includes past employees of the Releasee. Specifically, the release extends from the franchisee and their related parties to the 'Releasee, its past and present agents, employees, officers, directors, members, Franchisees, successors, assigns and affiliates (collectively "Released Parties")'.
This means that by signing the General Release, the franchisee agrees to release All States M.E.D. and all the listed parties from any claims or liabilities. This release covers a broad range of potential claims, including those related to the franchise agreement itself or any other aspect of the franchise relationship. The franchisee is giving up their right to sue All States M.E.D. and its associated parties for any known or unknown issues up to the date of the release.
However, the release does not apply to 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. This ensures that franchisees retain their rights and protections under these specific laws, despite signing the general release.
It is important for a prospective All States M.E.D. franchisee to carefully review the General Release and understand its implications before signing. They should consult with an attorney to fully understand the rights they are waiving and the protections they are retaining under applicable state franchise laws.