Must a Beverly Anns Cookie franchisee and their owners sign a general release during a transfer?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.3.10 General Release.
You and each of your Owners sign a general release in the form we prescribe for all known and unknown claims against us, our affiliates and subsidiaries, and our and their respective members, officers, directors, agents and employees, arising before or contemporaneously with the Transfer.
If the proposed transferee has any previous relationship with us or our affiliates, then the proposed transferee must also execute a general release.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, a franchisee and their owners must sign a general release during a transfer. Specifically, the franchisee and each of their owners must sign a release for all known and unknown claims against Beverly Anns Cookie, its affiliates and subsidiaries, and their respective members, officers, directors, agents, and employees. This release covers claims arising before or at the same time as the transfer.
Additionally, if the proposed transferee has had any prior dealings with Beverly Anns Cookie or its affiliates, they must also sign a general release. This requirement ensures that Beverly Anns Cookie is protected from potential liabilities or disputes that may arise from past relationships or actions.
This requirement is a fairly standard practice in franchising, as it aims to provide the franchisor with a clean break from the franchisee and their ownership, preventing future legal claims related to the period before the transfer. A prospective franchisee should carefully review the release document and understand its implications before signing.