What general release must the franchisee, each owner, and each spouse execute when transferring a Beard Papas franchise?

According to Beard Papas's 2025 Franchise Disclosure Document, when transferring a franchise, the franchisee, each owner, and each spouse must execute a General Release. This release, attached as Exhibit 8 to the Franchise Agreement, absolves Beard Papas, its affiliates, and its past and present officers, directors, shareholders, members, partners, agents, representatives, independent contractors, servants, and employees from any claims against Beard Papas. The claims covered are those arising on or before the effective date of the transfer.

In simpler terms, this means that as part of the franchise transfer process, the current franchisee and their associated parties (owners and spouses) must sign a document that prevents them from suing Beard Papas for anything that happened up to the date the franchise is transferred to the new owner. This is a standard practice in franchising to ensure a clean break between the old franchisee and the franchisor, minimizing potential future legal issues related to the previous ownership.

This requirement protects Beard Papas from potential liabilities or disputes that might arise from the franchisee's operation of the business before the transfer. For a prospective franchisee, it's important to understand that when buying a Beard Papas franchise, the previous owner is giving up any right to make claims against the franchisor for past issues. This underscores the importance of due diligence when acquiring a franchise to ensure there are no hidden liabilities or unresolved issues from the previous owner's tenure.