What is the scope of the release provided to Azal Coffee as a condition of transfer?
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 Azal Coffee's consent to a franchise transfer, the franchisee must release Azal Coffee from certain liabilities. This release covers all liabilities, rights, claims, debts, and causes of action, whether known or unknown, suspected or unsuspected, that the franchisee has, had, or may have.
The release extends to Azal Coffee and its representatives, owners, employees, officers, agents, and assigns. The scope includes any agreement entered into between the franchisee and Azal Coffee on or before the date of the transfer agreement, as well as any act or omission occurring on or before that date.
However, the 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 claims, the franchisee must still adhere to the terms of the transfer agreement. This type of release is standard practice in franchising to protect the franchisor from future claims arising from the franchisee's operation of the business prior to the transfer.