What is the franchisee releasing the franchisor from in the Azal Coffee Franchise Termination and Release Agreement?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- Release. As a condition to our consent to your transfer to the Buyer, you release and forever discharge us and our representatives, owners, employees, officers, agents and assigns from all liability, right, claim, debt and cause of action whatsoever, known or unknown, suspected or unsuspected, which you ever had, now have or may have at any time based on any agreement entered into between the parties on or before the date of this Agreement or based on any act or omission occurring on or before the date of this Agreement; provided, that nothing contained in this Section will affect your rights and obligations under this Agreement.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, as a condition for the franchisor's consent to a transfer of the franchise to a buyer, the franchisee releases Azal Coffee and its representatives from all forms of liability, rights, claims, debts, and causes of action. This release covers everything, whether known or unknown, suspected or unsuspected, that the franchisee ever had, currently has, or may have in the future.
The release applies to any agreement entered into between the franchisee and Azal Coffee on or before the date of the Termination and Release Agreement, and to any act or omission occurring on or before that date. This means the franchisee gives up the right to sue Azal Coffee for past issues.
However, the release does not affect the franchisee's rights and obligations under the Termination and Release Agreement itself. This ensures that the franchisee must still meet the requirements outlined in that specific agreement, even while releasing Azal Coffee from other potential liabilities. This type of release is standard practice in franchise agreements to protect the franchisor from future claims when a franchise changes hands.