Does the All Team General Release cover claims related to the franchise agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Releasor, on behalf of itself and each of the persons and entities described in Section 2 hereof, hereby absolutely and forever releases, remises and discharges Franchisor and each of the persons and entities described in Section 3 hereof, from any and all claims, demands, damages, liabilities, costs (including, but not limited to reasonable attorneys' fees, accounting fees or experts' fees, and the costs of litigation, arbitration or other proceedings), expenses, liens, losses, charges, audits, investigations, injunctions, orders, rulings, subpoenas, controversies, obligations, debts, loans, interest, dues, accounts, awards, reckonings, bonds, bills, covenants, promises, undertakings, variances, trespasses, judgments, executions, sums of money owed, arbitrations, suits, decisions, proceedings, verdicts entered, issued, made or rendered and causes of action of every kind and nature whatsoever, whether now known or unknown, suspected or unsuspected, which Releasor now has, owns or holds, or at any time heretofore ever had, owned or held, or could, shall or may hereafter have, own or hold, pertaining to, arising out of or in connection with the Franchise Agreement, any related agreements or the franchisor-franchisee relationship between Releasor and Franchisor.
Notwithstanding the foregoing, if this General Release is entered into in conjunction with the renewal, assignment or transfer of the Franchise Agreement, the foregoing release shall not apply to any liability under any state franchise law which governs this Release.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the General Release covers claims related to the franchise agreement. The General Release states that the franchisee releases All Team from all claims and causes of action, whether known or unknown, that pertain to, arise out of, or are connected with the Franchise Agreement or the franchisor-franchisee relationship. This means that by signing the General Release, a franchisee gives up their right to sue All Team for any issues related to the franchise agreement.
However, there is an exception. If the General Release is signed in conjunction with a renewal, assignment, or transfer of the Franchise Agreement, the release does not apply to any liability under any state franchise law which governs the release. This protects franchisees from unintentionally waiving their rights under state franchise laws during a renewal or transfer process.
Prospective All Team franchisees should carefully review the General Release with legal counsel to fully understand the scope of the claims they are waiving and the potential implications for their rights and remedies under the franchise agreement and applicable state laws. They should also be aware of the circumstances under which the release is being signed, as this may affect the extent to which it is enforceable.