Does the release in the Azal Coffee Franchise Termination and Release Agreement affect the franchisee's rights and obligations under the agreement itself?
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, the release within the Termination of Franchise Agreement does not affect the franchisee's rights and obligations under the agreement itself. The franchisee releases Azal Coffee from all liabilities and claims up to the date of the agreement. However, a specific provision clarifies that this release does not impact the franchisee's existing rights and obligations as defined within the original Franchise Agreement.
This means that even after signing the release, the franchisee must still adhere to all duties and responsibilities outlined in the Franchise Agreement. This could include ongoing obligations related to non-competition, confidentiality, or any other terms that extend beyond the termination date.
For a prospective Azal Coffee franchisee, this clause provides some assurance that certain rights and obligations will remain intact even when a release is signed during a transfer. It is important to carefully review the entire Franchise Agreement to fully understand the scope and duration of these rights and obligations, as they can significantly impact post-termination activities.