For Beverly Anns Cookie, what parties are included in the definition of 'Released Parties'?
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").
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, the "Releasors" in the sample Waiver and Release of Claims include the franchisee, any individuals holding an ownership interest in the franchisee (referred to as "Owners"), and collectively, the franchisee and the owners. This definition is relevant when a franchisee seeks to transfer the Franchise Agreement, enter into a successor franchise agreement, amend the agreement, or terminate the agreement.
This means that when such events occur, Beverly Ann's Cookie requires a waiver and release of claims. This release must come not only from the franchisee entity itself but also from each individual who holds an ownership stake in the franchise. By including all owners in the release, Beverly Ann's Cookie aims to ensure that all parties who might have a claim against them are waiving their rights.
For a prospective Beverly Ann's Cookie franchisee, this highlights the importance of understanding the legal implications of ownership. If a franchisee operates their Beverly Ann's Cookie business through a corporate entity with multiple owners, all owners will be required to sign the release. This requirement protects Beverly Ann's Cookie from potential future claims by ensuring comprehensive legal coverage during significant changes in the franchise relationship.