factual

Does the release in the Azal Coffee Addendum to Franchise Agreement cover unknown claims?

Azal_Coffee Franchise · 2024 FDD

Answer 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, the release within the termination agreement includes a waiver of both known and unknown claims. This means that when a franchisee transfers their Azal Coffee franchise to a buyer, they must release Azal Coffee from any and all liabilities, known or unknown, that they may have against the company. This release extends to Azal Coffee's representatives, owners, employees, officers, agents, and assigns.

This release is a condition for Azal Coffee's consent to the franchise transfer. The release covers any liability, right, claim, debt, and cause of action the franchisee ever had, currently has, or may have in the future. This is based on any agreement entered into on or before the date of the termination agreement or any act or omission occurring on or before that date.

However, the release does not affect the franchisee's rights and obligations under the termination agreement itself. This provision ensures that the franchisee cannot later claim against Azal Coffee for issues that were not known at the time of the transfer, providing a clean break for both parties. Franchisees should carefully consider the implications of this release and consult with legal counsel to understand the full extent of their rights and obligations before signing the termination agreement.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.