What claims are released when a Bee Organized franchisee executes the General Release?

According to Bee Organized's 2025 Franchise Disclosure Document, when transferring a franchise agreement, the franchisee, each owner, and each spouse must execute a General Release. This release covers Bee Organized, its affiliates, and its past and present officers, directors, shareholders, members, partners, agents, representatives, independent contractors, servants, and employees. The release applies to any and all claims against Bee Organized for matters arising on or before the effective date of the transfer.

This requirement ensures that Bee Organized is protected from potential liabilities related to the franchisee's operation of the business up to the point of transfer. It is a common practice in franchising to include such a release to provide a clean break between the franchisor and the outgoing franchisee. The General Release is attached to the Franchise Agreement as Exhibit 5.

However, prospective Bee Organized franchisees should be aware of any state-specific regulations that may limit the scope or enforceability of such releases. For example, amendments included in the FDD for Maryland, New York, and Washington indicate certain claims cannot be waived, particularly those arising under state franchise laws. Franchisees should carefully review these amendments and consult with legal counsel to understand their rights and obligations regarding the General Release.