What are the requirements for the form of the general release that the All Team franchisee must execute?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
The FRANCHISEE, including all officers, directors and shareholders (as well as all guarantors under this Agreement) must execute a general release, in the form which ATFC approve, of any and all claims against ATFC, ATFC's affiliates, and their respective officers, directors employees and agents, to the extent permitted by law;
Releasor hereby understands and agrees that this General Release shall extend to and be binding upon any and all of Releasor's past, present and future officers, directors, owners, employees, representatives, agents, trustees, successors, affiliates and assigns, and their respective insurers and underwriters.
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.
Releasor hereby understands and agrees that this General Release supersedes any prior agreement, oral or written, with respect to its subject matter.
Releasor understands and agrees that no representations, warranties, agreements or covenants have been made by Franchisor with respect to this General Release, other than those expressly set forth herein, and that in executing this General Release, Releasor is not relying upon any representations, warranties, agreements or covenants not expressly set forth in this General Release.
This General Release may not be changed except in a writing signed by the person(s) against whose interest such change shall operate.
This General Release and all acts and transaction under it shall in all respects be interpreted, enforced and governed by the internal laws of the state in which Franchisor's principal place of business is located without regard to principles of conflicts of law
If any provision of this General Release is found or declared invalid or unenforceable by any arbitrator, court or other competent authority having jurisdiction, such finding or declaration shall not invalidate any other provision hereof and this General Release shall thereafter continue in full force and effect except that such invalid or unenforceable provision, and (if necessary) other provisions hereof, shall be reformed by such arbitrator, court or other competent authority so as to effect insofar as is practicable, the intention of the parties set forth in this General Release, provided that if such arbitrator, court or other competent authority is unable or unwilling to effect such reformation, the invalid or unenforceable provision shall be deemed deleted to the same extent as if it had never existed.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, a franchisee, including all officers, directors, and shareholders, along with all guarantors, must execute a general release in a form approved by All Team Franchise Corporation (ATFC) as a condition for the franchisor's consent to a transfer of ownership. This release covers any and all claims against ATFC, its affiliates, and their respective officers, directors, employees, and agents, to the extent permitted by law.
The general release provided by All Team extends to and binds the franchisee's past, present, and future officers, directors, owners, employees, representatives, agents, trustees, successors, affiliates, and assigns, including their insurers and underwriters. It also benefits All Team and its past, present, and future officers, directors, owners, employees, representatives, agents, trustees, successors, affiliates, and assigns, including their insurers and underwriters.
The General Release supersedes any prior agreements, whether oral or written, related to its subject matter. Franchisees acknowledge that they are not relying on any representations, warranties, agreements, or covenants not explicitly stated in the General Release when executing it. Any changes to the General Release must be made in writing and signed by the party against whose interest the change operates. The General Release is interpreted, enforced, and governed by the internal laws of the state where All Team's principal place of business is located, without regard to conflicts of law principles.
If any provision of the General Release is found to be invalid or unenforceable, it will not invalidate the remaining provisions. Instead, the invalid or unenforceable provision will be reformed by an arbitrator, court, or other competent authority to align with the parties' intentions as set forth in the General Release. If such reformation is not possible, the provision will be deemed deleted as if it never existed.