Under what circumstances might Bombs Away require a franchisee to sign a general release?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
th herein. Guarantor shall pay to Bombs Away Franchising all costs incurred by Bombs Away Franchising (including reasonable attorney fees) in enforcing this Guaranty. If multiple Guarantors sign this Guaranty, each will have joint and several liability.
Agreed to by:
Address: Address: Address:
Attachment 3 to Franchise Agreement
FORM OF GENERAL RELEASE
[This is our current standard form of General Release. This document is not signed when you purchase a franchise. In circumstances such as a renewal of your franchise or as a condition of our approval of a sale of your franchise, we may require you to sign a general release.]
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.
- 4. Miscellaneous. If any of the provisions of this Release are held invalid for any reason, the remainder of this Release will not be affected and will remain in full force and effect. In the event of any dispute concerning this Release, the dispute resolution, governing law, and venue provisions of the Franchise Agreement shall apply. Releasor agrees to take any actions and sign any documents that Bombs Away Franchising reasonably requests to effectuate the purposes of this Release. This Release contains the entire agreement of the parties concerning the subject matter hereof. This Release shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
| Agreed to by: | |
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| Name: | |
| Date: |
Item 23 RECEIPTS
Detachable documents acknowledging your receipt of this disclosure document are attached as the last two pages of this disclosure document.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, a franchisee may be required to sign a general release under specific circumstances, such as during the renewal of their franchise agreement or as a condition for Bombs Away's approval of a sale of the franchise. Additionally, if a franchisee continues to operate the business after the expiration of the franchise term without a renewal agreement, Bombs Away can bind the franchisee to a renewal term of 5 years and deem the franchisee to have made a general release of liability.
The general release involves the franchisee releasing Bombs Away from all claims, causes of action, and liabilities arising out of events through the date of the release, including those related to the Franchise Agreement. The franchisee also agrees not to initiate any legal proceedings against Bombs Away. The franchisee confirms they have the authority to sign the release and have had the opportunity to consult with legal counsel.
Furthermore, in the event of a transfer of the franchise, Bombs Away may require the franchisee, its owners, and the transferee to execute a general release in a form satisfactory to Bombs Away. This requirement ensures that Bombs Away is protected from potential liabilities or claims that may arise from the previous franchisee's operation of the business. This is a common practice in franchising to protect the brand and ensure a clean transition between franchisees.