What is the 'Releasor' covenanting not to do in the Better Blend franchise agreement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- **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, on behalf of all Releasing Parties, agrees to a 'Covenant Not to Sue.' This means they are promising not to initiate, prosecute, encourage, assist, or participate in any civil, criminal, or administrative proceeding or investigation against any Released Party. This applies to any court, agency, or other forum. The Releasor agrees not to take action either directly or indirectly through cross-claims, defenses, or counterclaims.
In simpler terms, the franchisee (Releasor), along with their related entities, is agreeing not to bring any legal action against Better Blend (Released Party). This includes lawsuits, criminal proceedings, or administrative investigations. They also cannot support or help others in bringing such actions. This commitment extends to any legal venue, and they cannot use claims against Better Blend as a defense in other legal matters.
This covenant is a significant legal commitment. It prevents the franchisee from seeking legal recourse against Better Blend for any claims covered by the release. Franchisees should carefully consider the implications and consult with an attorney before signing any document containing such a clause. It is important to understand what rights are being waived and whether the circumstances warrant such a broad release of liability.