Does the Better Blend release agreement require the franchisee to pay any fees?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 43–157)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, the standard General Release form itself does not explicitly require the franchisee (referred to as the 'Releasor') to pay any fees. The document outlines a release of claims by the franchisee in favor of Better Blend Franchising, LLC ('BBF').
The General Release includes clauses where the franchisee releases Better Blend from any and all claims and agrees not to initiate legal action against them. This release is comprehensive, covering all known and unknown claims arising from events up to the date of the release, including those related to the Franchise Agreement. The document specifies that the franchisee is giving up their right to sue Better Blend for any reason related to the franchise.
However, the FDD indicates that Better Blend may require a franchisee to sign a general release in circumstances such as a renewal or transfer of the franchise. 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 may be considered unfair, unjust, or inequitable. While the release itself doesn't stipulate fees, it's essential to understand the conditions under which Better Blend requires it, as those circumstances (like renewal or transfer) may involve associated costs or fees as outlined elsewhere in the Franchise Agreement.