What actions does the Bombs Away franchisee agree to take to effectuate the purposes of the General Release?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
This General Release ("Release") is executed by the undersigned ("Releasor") in favor of Bombs Away Franchising, LLC, a Wyoming Limited Liability Company ("Bombs Away Franchising").
Background Statement: [describe circumstances of Release]
Releasor agrees as follows:
- **1.
Release.** Releasor (on behalf of itself and its parents, subsidiaries and affiliates and their respective past and present officers, directors, shareholders, managers, members, partners, agents, and employees (collectively, the "Releasing Parties")) hereby releases Bombs Away Franchising, its affiliates, and their respective directors, officers, shareholders, employees, and agents (collectively, the "Released Parties") from any and all claims, causes of action, suits, debts, agreements, promises, demands, liabilities, contractual rights and/or obligations, of whatever nature, known or unknown, which any Releasing Party now has or ever had against any Released Party based upon and/or arising out of events that occurred through the date hereof, including without limitation, anything arising out of the Franchise Agreement (collectively, "Claims").
- **2.
Covenant Not to Sue.** Releasor (on behalf of all Releasing Parties) covenants not to initiate, prosecute, encourage, assist, or (except as required by law) participate in any civil, criminal, or administrative proceeding or investigation in any court, agency, or other forum, either affirmatively or by way of cross-claim, defense, or counterclaim, against any Released Party with respect to any Claim.
- **3.
Representations and Acknowledgments.** Releasor represents and warrants that: (i) Releasor is the sole owner of all Claims, and that no Releasing Party has assigned or transferred, or purported to assign or transfer, to any person or entity, any Claim; (ii) Releasor has full power and authority to sign this Release; and (iii) this Release has been voluntarily and knowingly signed after Releasor has had the opportunity to consult with counsel of Releasor's choice.
Releasor acknowledges that the release in Section 1 is a complete defense to any Claim.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, the franchisee, referred to as the 'Releasor,' agrees to several actions within the General Release to ensure its effectiveness. The franchisee releases Bombs Away Franchising from all claims, debts, and liabilities arising from events up to the date of the release, including those related to the Franchise Agreement. This means the franchisee gives up the right to sue Bombs Away for any past issues.
Furthermore, the franchisee agrees not to initiate or participate in any legal proceedings against Bombs Away Franchising regarding any claim covered by the release. This includes refraining from assisting or encouraging others to bring claims. The franchisee also confirms that they have the authority to sign the release and that they have not assigned any claims to others. They acknowledge that the release serves as a complete defense against any future claims.
In practical terms, this General Release is a significant legal document. Bombs Away may require a franchisee to sign it under specific circumstances, such as during a franchise renewal or as a condition for approving the sale of the franchise. By signing, the franchisee essentially waives their right to pursue legal action against Bombs Away Franchising for past events. A prospective franchisee should carefully consider the implications and consult with an attorney before signing such a release, as it can significantly impact their legal rights.