Who is the 'Releasor' in the context of the Better Blend General Release?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
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 Better Blend's 2024 Franchise Disclosure Document, the 'Releasor' in the General Release is the party who is providing the release of claims. Specifically, the Releasor is the 'undersigned' party executing the General Release in favor of Better Blend Franchising, LLC ('BBF').
In practical terms, this means that a Better Blend franchisee, or in some cases their affiliates, subsidiaries, parents, officers, directors, shareholders, managers, members, partners, agents, and employees, may be asked to sign this release under certain circumstances. These circumstances, as noted in the FDD, may include the renewal of their franchise agreement or as a condition for Better Blend's approval of a sale of the franchise.
By signing the General Release, the Releasor agrees to release BBF and its affiliates from any and all claims, debts, and liabilities that the Releasor (or any of the 'Releasing Parties' associated with them) has or ever had against BBF. The Releasor also agrees to a 'Covenant Not to Sue,' meaning they will not initiate or participate in any legal proceedings against BBF regarding any claim covered by the release. Prospective franchisees should carefully consider the implications of signing such a release and consult with legal counsel, as acknowledged in the release itself.