What must a Bang Cookies franchisee and its owners release the franchisor from as a condition of renewal?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
- (8) Franchisee and the Owners must agree to, sign, and deliver to Franchisor, within 30 days of the date of delivery by Franchisor to Franchisee, Franchisor's then current form of general release whereby Franchisee and Franchisee's Owners shall each fully release and discharge Franchisor, Franchisor's affiliates and it's officers, directors, shareholders, partners, agents, representatives, independent contractors, servants, employees, successors and assigns from any and all claims, causes of action, and suits arising from and/or related to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, as a condition of renewal, both the franchisee and its owners must agree to, sign, and deliver a general release to Bang Cookies. This release discharges Bang Cookies, its affiliates, and its officers, directors, shareholders, partners, agents, representatives, independent contractors, servants, employees, successors, and assigns from any and all claims, causes of action, and suits arising from or related to the franchise agreement.
In simpler terms, before a Bang Cookies franchisee can renew their franchise agreement, they (and their owners) must sign a document that prevents them from suing Bang Cookies for any reason related to the original agreement. This is a standard practice in franchising, designed to provide the franchisor with legal protection moving forward.
This requirement means a franchisee considering renewal should carefully evaluate if they have any existing or potential legal claims against Bang Cookies. By signing the release, they forfeit the right to pursue those claims. It is advisable for a franchisee to consult with an attorney before signing such a release to fully understand the implications.
This condition is in place to ensure a clean slate moving forward into the renewal term, preventing any past issues from becoming legal disputes. Franchisees should be aware of this requirement and factor it into their decision-making process when considering whether to renew their Bang Cookies franchise agreement.