What is the scope of claims covered by 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 General Release covers a broad range of claims. The Releasor, which includes the franchisee and their related entities, releases Better Blend Franchising, LLC (BBF) and its affiliates from any and all claims, causes of action, suits, debts, agreements, promises, demands, liabilities, contractual rights, and/or obligations. This encompasses anything known or unknown, of whatever nature, that the Releasing Party has or ever had against the Released Party.
The release specifically includes, but is not limited to, anything arising out of the Franchise Agreement. The Releasor also agrees not to initiate or participate in any legal proceedings against Better Blend or related parties concerning any released claim. This includes civil, criminal, or administrative proceedings.
Several state addenda, such as those for Maryland and Washington, include stipulations that may affect the enforceability of the general release within those states. For example, in Washington, a release of rights under the Washington Franchise Investment Protection Act is only valid if executed as part of a negotiated settlement with independent counsel after the franchise agreement is in effect. In North Dakota, franchise agreements that require the franchisee to sign a general release upon renewal of the franchise agreement have been determined by the Securities Commissioner to be unfair, unjust, or inequitable to North Dakota franchisees.