Who is included in the definition of 'Released Parties' in the Best Brains release agreement?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Release- Franchisee and all of Franchisee's guarantors, members, officers, directors, employees, agents, successors, assigns and affiliates fully and finally release and forever discharge Releasee, its past and present agents, employees, officers, directors, members, Franchisees, successors, assigns and affiliates (collectively "Released Parties") from any and all claims, actions, causes of action, contractual rights, demands, damages, costs, loss of services, expenses and compensation which Franchisee could assert against Released Parties or any of them up through and including the date of this Release.
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- THIS IS A SPECIFIC RELEASE GIVING UP ALL RIGHTS WITH RESPECT TO THE TRANSACTIONS OR OCCURRENCES THAT ARE BEING RELEASED UNDER THIS AGREEMENT.
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- California Releasor- You represent and warrant that YOU EXPRESSLY WAIVE ANY AND ALL RIGHTS AND BENEFITS UNDER CALIFORNIA CIVIL CODE §1542, which provides as follows:
A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.
- The above Release shall not apply to any liabilities arising under the California Franchise Investment Law, the California Franchise Relations Act, Indiana Code § 23-2-2.5.1 through 23-2-2.7-7, the Maryland Franchise Registration and Disclosure Law, Michigan Franchise
Investment Law, Minnesota Franchise Act, North Dakota franchise laws, the Rhode Island Investment Act, and the Washington Franchise Investment Protection Act and the rules adopted thereunder.
- Releasor agrees to comply with all of its applicable post-termination or post-transfer obligations (as the case may be) in the Franchise Agreement described above.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the release agreement involves the franchisee (and their related parties) releasing Best Brains and its related parties from certain claims. The 'Released Parties' are defined to include Releasee, its past and present agents, employees, officers, directors, members, Franchisees, successors, assigns, and affiliates. This means the franchisee is agreeing to not sue or make claims against those associated with Best Brains.
This release covers a broad range of potential claims, encompassing any actions, causes of action, contractual rights, demands, damages, costs, loss of services, expenses, and compensation that the franchisee could assert against the Released Parties up to the date of the release. However, this release does not apply to liabilities arising under specific state franchise laws, such as the California Franchise Investment Law, and similar laws in Indiana, Maryland, Michigan, Minnesota, North Dakota, Rhode Island, and Washington.
It is important for a prospective Best Brains franchisee to carefully review the release with a legal professional to fully understand the scope of claims being waived and the implications of signing such an agreement. Franchisees should also be aware of the specific state laws that are excluded from the release, as these may provide additional protections.