Can the Better Blend General Release be modified?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
oval.
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- No Liability. By executing this Rider, Franchisor does not assume any liability with respect to the Leased Premises or any obligation as Tenant under the Lease.
Executed by:
| opportunity purchasers (including the Ohio Business Opportunity Purchasers Protection Act, Ohio | | | | | |---|---|---|---|---| | Rev. Code §§ 1334.01 et seq.) will not apply unless its jurisdictional requirements are met | | | | | | independently without | reference to this | Section 5. The | provisions of Article | 17 (Dispute |
EXHIBIT E
FORM OF GENERAL RELEASE
[This is our current standard form of General Release. This document is not signed when you purchase a franchise. In circumstances such as a renewal of your franchise or as a condition of our approval of a sale of your franchise, we may require you to sign a general release.]
This General Release ("Release") is executed by the undersigned ("Releasor") in favor of Better Blend Franchising, LLC, an Ohio limited liability company ("BBF").
Background Statement: [describe circumstances of Release]
Releasor agrees as follows:
- 1. Release. Releasor (on behalf of itself and its parents, subsidiaries and affiliates and their respective past and present officers, directors, shareholders, managers, members, partners, agents, and employees (collectively, the "Releasing Parties")) hereby releases BBF, its affiliates, and their respective directors, officers, shareholders, employees, franchise sellers, and agents (collectively, the "Released Parties") from any and all claims, causes of action, suits, debts, agreements, promises, demands, liabilities, contractual rights and/or obligations, of whatever nature, known or unknown, which any Releasing Party now has or ever had against any Released Party based upon and/or arising out of events that occurred through the date hereof, including without limitation, anything arising out of the Franchise Agreement (collectively, "Claims").
- 2. Covenant Not to Sue. Releasor (on behalf of all Releasing Parties) covenants not to initiate, prosecute, encourage, assist, or (except as required by law) participate in any civil, criminal, or administrative proceeding or investigation in any court, agency, or other forum, either affirmatively or by way of cross-claim, defense, or counterclaim, against any Released Party with respect to any Claim.
- **3.
Source: Item 23 — RECEIPTS (FDD pages 43–157)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the standard form of General Release is Better Blend's current standard form. The document itself is not signed when purchasing a franchise. However, Better Blend may require a franchisee to sign a general release in circumstances such as a renewal of the franchise or as a condition of Better Blend's approval of a sale of the franchise.
The General Release requires the franchisee (Releasor) to release Better Blend Franchising, LLC (BBF) and its affiliates from all claims, causes of action, suits, debts, agreements, promises, demands, liabilities, contractual rights, and/or obligations, known or unknown, that the Releasing Party has or ever had against any Released Party based upon and/or arising out of events that occurred through the date of the release, including anything arising out of the Franchise Agreement. The Releasor also agrees not to initiate, prosecute, encourage, assist, or participate in any legal proceedings against Better Blend.
However, the North Dakota Addendum to the Disclosure Document states that franchise agreements requiring a franchisee to sign a general release upon renewal of the franchise agreement have been held by the Securities Commissioner to be unfair, unjust, or inequitable to North Dakota franchisees. This suggests that while Better Blend's standard agreement may include a general release, its enforceability and applicability can vary by jurisdiction, particularly in North Dakota.
Prospective franchisees should seek legal counsel to understand the implications of signing a general release and whether it can be modified or negotiated, especially in light of state-specific regulations like those in North Dakota. It is important to clarify under what circumstances Better Blend would require a general release and what options a franchisee has in such situations.