Does the Bor Restoration franchise agreement include an exhibit for a General Release?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
| Exhibit 1 | Initial Franchise Fee and Statement of Ownership |
|---|---|
| Exhibit 2 | Exclusive Territory and Franchised Location |
| Exhibit 3 | Release for Criminal and Credit Check |
| Exhibit 4 | General Release |
| Exhibit 5 | Collateral Assignment of Contact and Electronic Information |
| Exhibit 6 | Confidentiality Agreement |
| Exhibit 7 | State Addenda |
| Exhibit 8 | Guaranty |
| Exhibit 9 | Closing Acknowledgement |
Source: Item 22 — Contracts (FDD page 40)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the franchise agreement includes an exhibit for a General Release. Specifically, Exhibit 4 to the franchise agreement is a General Release. This suggests that as part of finalizing the franchise agreement, Bor Restoration may require franchisees to sign a document releasing the company from certain liabilities or claims.
General releases are fairly common in franchising. They are designed to protect the franchisor from potential legal issues that might arise from the franchise relationship. However, the scope and enforceability of such releases can vary depending on state laws and the specific terms of the agreement. Franchisees should carefully review the General Release with a legal professional to understand exactly what rights they are waiving.
It is important to note that Bor Restoration's FDD also states that no agreement signed by a franchisee can waive claims under applicable state franchise law, including fraud, or disclaim reliance on statements made by the franchisor. This provision aims to protect franchisees from unknowingly giving up important legal rights. Prospective franchisees should pay close attention to this clause and understand how it interacts with the General Release to ensure their rights are adequately protected.