Under the Benjamin Franklin Plumbing General Release, who are considered the 'Franchisee Parties'?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Release. You and each of the Owners, on behalf of yourselves and all past, present and future parents, subsidiaries, shareholders, members, partners, managers, directors, officers, employees, successors, assigns, agents and legal representatives, and any of the aforementioned persons' heirs, executors, administrators or personal representatives, and all other persons acting on your behalf or claiming under you (collectively, the "Franchisee Parties"), hereby release and forever discharge Franchisor, its affiliates, and their respective past and present officers, directors, shareholders, members, parents, subsidiaries, affiliates, agents, employees, attorneys, insurers, representatives, predecessors, successors, and assigns, and each of them, from any and all claims, debts, liabilities, demands, obligations, costs, expenses, suits, actions, and causes of action, of whatever nature, known or unknown, suspected or unsuspected, vested or contingent (collectively, "Claims") that the Franchisee Parties ever had, now have, or may in the future have, arising out of or relating to any act, omission or event occurring on or before the date of this General Release.
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to Benjamin Franklin Plumbing's 2025 Franchise Disclosure Document, the term "Franchisee Parties" in the General Release encompasses a broad range of individuals and entities connected to the franchisee. This includes the franchisee and each of the owners, along with all past, present, and future parents, subsidiaries, shareholders, members, partners, managers, directors, officers, employees, successors, assigns, agents, and legal representatives. The definition extends further to include any of the aforementioned persons' heirs, executors, administrators, or personal representatives, and all other persons acting on the franchisee's behalf or claiming under them.
This comprehensive definition has significant implications for a prospective Benjamin Franklin Plumbing franchisee. By signing the General Release, the franchisee and all associated parties agree to release Benjamin Franklin Plumbing from any and all claims, debts, liabilities, and demands, whether known or unknown, arising from events occurring on or before the date of the release. This means that not only the franchisee but also their family members, business partners, and employees are bound by the terms of the release.
The General Release also includes an understanding of the risk of changed facts, where the franchisee and the owners accept the risk that the facts may turn out to be different from what they know or believe to be true. Furthermore, the franchisee parties represent that they have not assigned or transferred any claim released under Section 1 to any person or business entity that is not a Franchisee Party. This ensures that no third party can bring a claim against Benjamin Franklin Plumbing based on the franchisee's prior actions.
Finally, the General Release includes a covenant not to sue, where the franchisee and the owners promise not to initiate, prosecute, encourage, assist, or participate in any legal proceeding against Benjamin Franklin Plumbing with respect to any claim released under Section 1. This provision is intended to prevent future litigation and protect Benjamin Franklin Plumbing from potential legal challenges. Franchisees should carefully review the General Release with legal counsel to fully understand its scope and implications before signing.