What kind of release must the franchisee and its owners execute in favor of Apricot Lane during a transfer?

According to Apricot Lane's 2025 Franchise Disclosure Document, when a franchisee transfers their business, both the franchisee and their owners must execute a general release in favor of Apricot Lane. This release must be in a form that is satisfactory to Apricot Lane.

This general release covers any and all claims, whether known or unknown, against Apricot Lane, its affiliates, and their respective shareholders, officers, directors, employees, agents, successors, and assigns. In simpler terms, by signing this release, the franchisee and their owners give up their right to sue Apricot Lane for anything, even issues they are not currently aware of.

This requirement is a standard practice in franchising to protect the franchisor from potential future liabilities related to the transferred business. A prospective Apricot Lane franchisee should carefully consider the implications of signing such a broad release and consult with an attorney to understand their rights and obligations before agreeing to a transfer.