What is the purpose of the Background Statement in the Better Blend General Release?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
visions 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 the 2024 Better Blend Franchise Disclosure Document, the Background Statement in the General Release serves to describe the circumstances under which the release is being executed. Better Blend may require a franchisee to sign a general release in specific situations, such as when renewing a franchise agreement or as a condition for approving the sale of a franchise.
The General Release is a legal document where the franchisee (Releasor) releases Better Blend Franchising, LLC (BBF) from any and all claims, liabilities, and obligations related to the Franchise Agreement. This includes known and unknown issues that occurred up to the date of the release. The franchisee also agrees not to initiate any legal actions against Better Blend.
In the context of a Multi-Unit Development Agreement (MUDA), the Background Statement clarifies that the release is connected to the franchisee entering into a Franchise Agreement with Better Blend for a Better Blend Nutrition business. It also acknowledges the franchisee's desire to develop multiple Better Blend Nutrition businesses. This statement sets the stage for the multi-unit commitment outlined in the agreement, where the franchisee agrees to develop and open multiple locations according to a specified schedule, paying the associated franchise fees.