What is the condition for the release of liability to Azal Coffee?

According to Azal Coffee's 2024 Franchise Disclosure Document, a franchisee must release Azal Coffee from all liabilities, rights, claims, debts, and causes of action as a condition for the franchisor's consent to the franchisee's transfer of the franchise to a buyer. This release covers all matters, whether known or unknown, suspected or unsuspected, that the franchisee ever had, currently has, or may have in the future. The release is based on any agreement between the parties on or before the date of the transfer agreement or any act or omission occurring on or before that date.

However, this release does not affect the franchisee's rights and obligations under the transfer agreement itself. This means that while the franchisee releases Azal Coffee from past and present liabilities, the franchisee must still fulfill their duties as outlined in the transfer agreement.

This condition is typical in franchise agreements to ensure a clean break between the exiting franchisee and the franchisor, preventing future legal disputes related to the period of the franchisee's operation. Prospective franchisees should carefully consider this clause and consult with legal counsel to understand the full scope of the release and its implications for any potential claims they may have against Azal Coffee.