What is the dependency between the transferee executing a general release and Beyond Juicery Eatery approving the transfer?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
- Sections 13.02 and 16.09 require you to sign a general release as a condition of renewal, transfer. Such release shall exclude claims arising under The Rhode Island Franchise Investment Act.
- Sections 23.02 and 23.09 are amended to state that restricting jurisdiction or venue to a forum outside the State of Rhode Island or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under The Rhode Island Franchise Investment Act.
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, several state-specific addenda modify the Beyond Juicery Eatery franchise and area development agreements regarding the requirement of a general release in connection with a transfer. For franchisees in New York, Section 8 of the Area Development Agreement mandates the signing of a general release as a condition of transfer, excluding claims arising under the General Business Laws. Similarly, for franchisees in Maryland and Rhode Island, Sections 13.02 and 16.09 of the Franchise Agreement also require a general release as a condition of transfer, excluding claims arising under their respective state's franchise laws.
These clauses mean that Beyond Juicery Eatery requires franchisees to waive certain legal claims against the company as part of the transfer process. However, the releases are explicitly limited, ensuring that franchisees do not waive rights under specific state franchise laws. This condition affects the franchisee's ability to pursue legal action against Beyond Juicery Eatery for issues not covered by the excluded claims, potentially limiting their recourse in case of disputes.
The inclusion of these clauses highlights the importance of understanding state-specific franchise laws and their implications. Prospective Beyond Juicery Eatery franchisees should carefully review these addenda and consult with legal counsel to fully understand their rights and obligations before agreeing to a transfer. The interplay between the franchise agreement, state laws, and the required general release can significantly impact a franchisee's legal standing and options.