Who is bound by and benefits from the provisions of the release agreement for Beverly Anns Cookie?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
This Waiver and Release of Claims ("Release") is made as of 7/17/2025 by and among [Entity Name], d/b/a ["dba name"], a(n) [state] [entity name] ("Franchisee"), each of the undersigned individuals holding an ownership interest in Franchisee ("Owner(s),") and (collectively with Franchisee, "Releasors") Mobile Cookie Company, LLC, a Delaware limited liability company ("Franchisor," and together with Releasors, each, a "Party" and together, the "Parties").
WHEREAS, Franchisor and Franchisee have entered into a Franchise Agreement ("Agreement") pursuant to which Franchisee was granted the right to own and operate a Beverly Ann's Business;
WHEREAS, (Franchisee has notified Franchisor of its desire to transfer the Agreement and all rights related thereto, or an ownership interest in Franchisee, to a transferee/enter into a successor franchise agreement/amend the Agreement) or (the Agreement is being terminated/or indicate other reason for the requirement of this waiver and release), and Franchisor has consented to such (transfer/successor franchise agreement/amendment/termination/other reason); and
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, the sample waiver and release of claims agreement is made as of July 17, 2025, by and among the franchisee (including their entity name and doing business as name), each individual holding an ownership interest in the franchisee (owners), and collectively with the franchisee (releasors), and Mobile Cookie Company, LLC (franchisor). These parties are each referred to as a "Party" and together, the "Parties".
This agreement is relevant when there's a transfer of the franchise agreement, an ownership interest change, a successor franchise agreement, an amendment to the agreement, or a termination of the agreement. The franchisor's consent is required for such changes.
In essence, the release agreement is designed to protect Beverly Ann's Cookie (Mobile Cookie Company, LLC) from potential future claims by franchisees or their owners under certain circumstances, such as when a franchise is transferred or terminated. It ensures that all parties are in agreement and that any potential disputes are resolved before the transfer or termination is finalized.