Who is the Bft General Release binding upon, besides the parties involved?

According to Bft's 2025 Franchise Disclosure Document, the General Release agreement is binding not only upon the parties directly involved but also extends to other related parties. Specifically, the agreement is binding upon the parties to the General Release and their respective heirs, executors, administrators, personal representatives, successors, and assigns. This means that the obligations and benefits outlined in the General Release will apply not only to the original signatories but also to those who inherit their rights or responsibilities, or to whom they transfer their interests.

This provision ensures that the terms of the General Release remain enforceable even if the original parties undergo changes in their legal status or ownership. For example, if a franchisee sells their business, the new owner (the 'assign') would also be bound by the terms of the General Release. Similarly, if a party dies, their estate (including heirs, executors, and administrators) would be subject to the agreement.

However, the General Release does not apply to liabilities under specific state franchise laws, including the Maryland Franchise Registration and Disclosure Law, the Minnesota Franchise Act, and the Washington Franchise Investment Protection Act. This means that even if a party signs a general release, they do not waive their rights to pursue claims under these specific state laws. This is a standard practice to protect franchisees' statutory rights, as franchise laws often provide specific protections that cannot be waived through a general release. Therefore, prospective Bft franchisees should be aware of these exceptions and consult with legal counsel to understand their rights fully.

In consideration of the grant of the Successor Franchise, Franchisee shall execute a general release in the form and substance satisfactory to Franchisor, releasing any and all claims Franchisee and its related parties may have against Franchisor and its affiliates, and their respective owners, officers, directors, employees, agents, successors and assigns.