Does the All Team General Release extend to the Franchisor's successors for All Team?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Releasor hereby understands and agrees that this General Release shall extend to and inure to the benefit of Franchisor and any and all of Franchisor's past, present and future officers, directors, owners, employees, representatives, agents, trustees, successors, affiliates and assigns, and their respective insurers and underwriters.
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 extends to the benefit of All Team's successors. The document states that the release benefits the franchisor and any of its past, present, and future officers, directors, owners, employees, representatives, agents, trustees, successors, affiliates, assigns, and their respective insurers and underwriters. This means that the release given by the franchisee is not only for the benefit of the current All Team entity but also for any future entity that may take over the All Team franchise system.
This clause protects All Team and its future successors from any claims, demands, damages, or liabilities related to the franchise agreement or the franchisor-franchisee relationship. The franchisee is essentially agreeing not to sue All Team or its successors for any issues arising from their franchise operations, subject to any limitations imposed by state franchise laws.
For a prospective All Team franchisee, this means they are giving up their right to sue not only the current All Team company but also any future owners or entities that may acquire the franchise system. This is a significant consideration, as it limits their legal recourse in the event of disputes or issues with the franchise, even if the franchise changes ownership. Franchisees should carefully consider the implications of this clause and seek legal advice to understand their rights and obligations under the General Release.