In the Belocal General Release, what is included in the definition of 'Franchisee Related Parties'?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- Release of Claims. Franchisee and its Principals, for themselves and on behalf of their respective guarantors, predecessors, parents, subsidiaries, affiliates, shareholders, members, partners, officers, directors, managers, employees, agents, representatives, attorneys, accountants, heirs, executors, administrators, family members, successors, and assigns, and all other persons acting on their behalf or claiming under them (collectively referred to as the "Franchisee Related Parties") irrevocably and unconditionally release and forever discharge Franchisor, Franchisor's predecessors, parents, subsidiaries, and affiliates, and their respective officers, directors, shareholders, partners, managers, members, agents, representatives, independent contractors, servants, employees, attorneys, accountants, guarantors, successors, and assigns, past and present, in their corporate and individual capacities, and all persons acting by, through, under or in concert with any of them (collectively "Releasees"), from all actions, causes of action, suits, debts, liens, contracts, agreements, obligations, promises, liabilities, claims, rights, demands, damages, controversies, losses, costs, and expenses (including attorneys' fees and costs actually incurred) of any nature whatsoever, known or unknown, suspected or unsuspected, fixed or contingent ("Claim" or "Claims"), which they now have or claim to have or at any time heretofore have had or claimed to have against each or any of the Releasees, including, without limitation, any and all such Claims arising from, based upon or related to the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the General Release defines "Franchisee Related Parties" broadly. This definition is important because it identifies all the individuals and entities who are releasing claims against Belocal in the event of a transfer or other occasion requiring a release.
The definition includes not only the franchisee themselves but also their principals, guarantors, predecessors, parents, subsidiaries, affiliates, shareholders, members, partners, officers, directors, managers, employees, agents, representatives, attorneys, accountants, heirs, executors, administrators, family members, successors, and assigns. It also encompasses all other persons acting on their behalf or claiming under them. This comprehensive list ensures that a wide range of individuals and entities connected to the franchisee are bound by the release, preventing future claims against Belocal.
For a prospective Belocal franchisee, this means that when signing a general release, they are not only releasing claims on their own behalf but also on behalf of a long list of related parties. Franchisees should carefully consider the implications of this broad definition and how it might affect their relationships with these related parties. It is advisable to consult with an attorney to fully understand the scope of the release and its potential consequences.