Who are the 'Released Parties' that are protected by the release in the Bombs Away franchise agreement?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
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").
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the "Released Parties" in the general release include Bombs Away Franchising, LLC, its affiliates, and their respective directors, officers, shareholders, employees, and agents. This means that the release extends beyond just the Bombs Away Franchising company itself to protect a wide range of related individuals and entities.
As a Bombs Away franchisee, you (the Releasor) are agreeing to release these "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. This release covers anything arising out of events that occurred through the date of the release, including without limitation, anything arising out of the Franchise Agreement.
The agreement also includes a covenant not to sue, preventing the franchisee from initiating or participating in any legal proceedings against the Released Parties with respect to any claim. This is a significant commitment, as it limits your ability to seek legal recourse against Bombs Away and related parties.
Bombs Away may require a general release from the franchisee in circumstances such as a renewal of the franchise or as a condition of approval for a sale of the franchise. Franchisees should carefully consider the implications of signing such a release and consult with legal counsel to fully understand their rights and obligations.