What is the purpose of the release that the Big Apple Bagels franchisee and transferee must execute?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) Franchisee and its owners, and the transferee (if it has had any previous relationship with Franchisor or Franchisor's affiliates), shall execute a release of any and all claims against Franchisor, and Franchisor's officers, directors, agents, employees and Affiliates, arising out of or related to this Agreement, as well as claims arising out of or related to the relationship of the parties created under this Agreement, which release shall contain language and be of the form prescribed by Franchisor;
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, both the franchisee and the transferee must sign a release to protect Big Apple Bagels from potential legal claims during a franchise transfer. Specifically, the franchisee and its owners, along with the transferee (if they had a prior relationship with Big Apple Bagels or its affiliates), must release any claims against Big Apple Bagels, its officers, directors, agents, employees, and affiliates. This release covers claims arising from the Franchise Agreement or the relationship between the parties.
This requirement is a standard practice in franchising. It ensures that upon transfer, Big Apple Bagels is free from any past or present disputes related to the transferring franchisee or any previous dealings with the incoming franchisee. The release is intended to be comprehensive, covering all possible claims related to the franchise agreement and the parties' relationship.
For a prospective Big Apple Bagels franchisee, this means that if they decide to sell their franchise, they must be willing to release Big Apple Bagels from any potential liabilities. Similarly, a potential transferee needs to be aware that they will also need to release any claims if they had prior dealings with Big Apple Bagels. Franchisees should carefully review the release document with legal counsel to understand the full scope of claims they are waiving. This requirement is one of many conditions that must be met before Big Apple Bagels approves a franchise transfer.