Under what circumstances might Better Blend require a franchisee to sign a general release?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
ider, Franchisor does not assume any liability with respect to the Leased Premises or any obligation as Tenant under the Lease.
Executed by:
| opportunity purchasers (including the Ohio Business Opportunity Purchasers Protection Act, Ohio | | | | | |---|---|---|---|---| | Rev. Code §§ 1334.01 et seq.) will not apply unless its jurisdictional requirements are met | | | | | | independently without | reference to this | Section 5. The | provisions of Article | 17 (Dispute |
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 ev
Source: Item 23 — RECEIPTS (FDD pages 43–157)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, a franchisee may be required to sign a general release under specific circumstances. This release is not a standard document signed when initially purchasing a franchise. However, Better Blend may require a franchisee to sign it upon renewal of the franchise agreement or as a condition for approving the sale of the franchise.
The general release involves the franchisee (referred to as the Releasor) releasing Better Blend Franchising, LLC (BBF) from any and all claims, causes of action, suits, debts, agreements, promises, demands, liabilities, contractual rights, or obligations. This release covers all known and unknown issues arising from events up to the date of signing, including those related to the Franchise Agreement. The release extends to BBF's affiliates, directors, officers, shareholders, employees, franchise sellers, and agents.
Furthermore, the franchisee agrees not to initiate or participate in any legal proceedings against Better Blend concerning any claim covered by the release. This includes a covenant not to sue, preventing the franchisee from pursuing any civil, criminal, or administrative actions against Better Blend. This requirement is designed to protect Better Blend from future legal liabilities related to the franchisee's operation or the franchise agreement itself when the franchisee renews or transfers the franchise.
It is important to note that in certain states like North Dakota, franchise agreements that require a franchisee to sign a general release upon renewal of the franchise agreement have been deemed unfair, unjust, or inequitable. Therefore, prospective franchisees should be aware of the implications of signing a general release and consult with legal counsel to understand their rights and obligations, especially concerning state-specific regulations.