In the Benihana agreement, what is the Releasor defined as?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| THIS AGREEMENT ("Agreement") is made and entered into this day of | |
|---|---|
| , 20 by and between Benihana National Corp., a Delaware corporation having its principal place of business located at 1624 Market Street, Suite 311, Denver, Colorado 80202 | |
| (the "Franchisor"), and | , an individual residing at (hereinafter referred to as "Releasor"), wherein the parties hereto, in exchange for good and valuable consideration, the sufficiency and receipt of which is hereby acknowledged, and in reliance upon the representations, warranties, and comments herein are set |
| forth, do agree as follows: |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the Releasor is defined as an individual residing at a specified address. This definition appears in the context of an agreement between Benihana National Corp., identified as the Franchisor, and the individual. The agreement outlines the terms and conditions under which both parties operate.
The use of a 'Releasor' suggests that this individual is releasing Benihana from certain liabilities or claims. This is further clarified in the document, stating that the Releasor releases the Franchisor from any and all claims, demands, damages, injuries, agreements and contracts, indebtedness, accounts of every kind or nature. This release covers both known and unknown issues that may arise from any transactions before the agreement's execution.
This clause is significant for a prospective franchisee because it indicates that they, as the Releasor, are waiving their rights to pursue legal action against Benihana for any past issues. It is a common practice in franchising to include such releases to protect the franchisor from potential liabilities related to past dealings or events. A franchisee should carefully review this clause with legal counsel to fully understand the implications of signing such a release.