Is the General Release signed when purchasing a Bombs Away franchise?

According to the 2024 Bombs Away Franchise Disclosure Document, the General Release is not signed when purchasing a franchise. However, Bombs Away may require a franchisee to sign a general release in circumstances such as a renewal of the franchise or as a condition of approval for a sale of the franchise.

The General Release, as described in the FDD, is executed by the Releasor in favor of Bombs Away Franchising, LLC. The Releasor, on behalf of itself and related parties, releases Bombs Away Franchising and its affiliates from all claims and liabilities arising from events up to the date of the release, including those related to the Franchise Agreement.

The document also includes a covenant not to sue, preventing the Releasor from initiating or participating in any legal proceedings against Bombs Away Franchising. The Releasor represents that they have the authority to sign the release and have done so voluntarily after having the opportunity to consult with legal counsel.

This type of release is common in franchise systems to protect the franchisor from potential future claims, especially during significant events like franchise renewal or transfer. Prospective Bombs Away franchisees should understand the implications of such a release and seek legal advice when presented with one.