Is the Releasor required to sign the Better Blend release agreement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
[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.
Representations and Acknowledgments.** Releasor represents and warrants that: (i) Releasor is the sole owner of all Claims, and that no Releasing Party has assigned or transferred, or purported to assign or transfer, to any person or entity, any Claim; (ii) Releasor has full power and authority to sign this Release; and (iii) this Release has been voluntarily and knowingly signed after Releasor has had the opportunity to consult with counsel of Releasor's choice.
Releasor acknowledges that the release in Section 1 is a complete defense to any Claim.
- **4.
Miscellaneous.** If any of the provisions of this Release are held invalid for any reason, the remainder of this Release will not be affected and will remain in full force and effect.
In the event of any dispute concerning this Release, the dispute resolution, governing law, and venue provisions of the Franchise Agreement shall apply.
Releasor agrees to take any actions and sign any documents that BBF reasonably requests to effectuate the purposes of this Release.
This Release contains the entire agreement of the parties concerning the subject matter hereof.
5. State Addenda.
[Maryland Residents]: This Release shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
[Washington Residents]: A release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act except when executed pursuant to a negotiated settlement after the franchise agreement is in effect and where the parties are represented by independent counsel.
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 not signed when purchasing a franchise. However, under certain circumstances, Better Blend may require a general release to be signed. These circumstances include the renewal of the franchise agreement or as a condition of Better Blend's approval for the sale of the franchise.
The General Release, if required, is executed by the Releasor in favor of Better Blend Franchising, LLC ("BBF"). The release covers the Releasor and its affiliates, releasing BBF and its affiliates from all claims and liabilities arising from events up to the date of the release, including those related to the Franchise Agreement. The Releasor also agrees not to initiate or participate in any legal proceedings against the Released Parties regarding any released claim.
The Releasor also makes several representations and acknowledgments, including that they are the sole owner of all claims, have the authority to sign the release, and have done so voluntarily after having the opportunity to consult with legal counsel. The release serves as a complete defense against any claim. It also stipulates that any actions or documents reasonably requested by Better Blend to fulfill the release's purpose must be undertaken and signed by the Releasor. For prospective franchisees in Maryland and Washington, there are specific stipulations regarding the applicability of the release under those states' franchise laws.