Does the All Team General Release cover claims related to the franchisor-franchisee relationship for All Team?
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 does cover claims pertaining to the franchisor-franchisee relationship. The document states that the franchisee, as the Releasor, releases All Team, the Franchisor, from all claims and causes of action related to the Franchise Agreement or the relationship between the franchisee and All Team. This release covers all types of claims, whether known or unknown, that the franchisee has or may have against All Team.
However, there is an exception to this broad release. If the General Release is signed in connection with a renewal, assignment, or transfer of the Franchise Agreement, the release does not apply to any liability under state franchise laws that govern the release. This means that franchisees may still have certain rights and protections under state law, even if they sign the General Release.
Furthermore, the FDD includes addenda for franchisees located in specific states like Minnesota, New York, and Virginia, which modify the standard terms of the franchise agreement and FDD to comply with state laws. For example, Minnesota law prohibits a franchisor from requiring a franchisee to assent to a general release. These state-specific provisions take precedence over the standard terms, ensuring that franchisees' rights under state laws are protected. Therefore, prospective franchisees should carefully review the General Release and any state-specific addenda to understand their rights and obligations fully.