Is the Bor Restoration General Release required in all franchise agreements?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
-|------| | SOCIAL SECURITY | | | NO.: | | | ADDRESS: | | | DRIVER'S LICENSE | | | STATE AND NO.: | | | GENDER: | |
© 2024 All rights reserved BOR Franchising, LLC Gen 3-30-24 ____________ ___________ Initials Initials
EXHIBIT 4 GENERAL RELEASE
| © 2024 All rights reserved BOR Franchising, LLC Gen 3-30-24 | 68 | ||
|---|---|---|---|
| Initials | Initials |
GENERAL RELEASE
| This General Release (Release) is made on the date that all Parties sign it (Effective Date) between BOR Franchising, LLC, a Colorado limited liability company authorized to do business in Colorado (Franchisor), (Franchisee), and (Guarantor). Franchisor, Franchisee, and Guarantor may sometimes be referred to as a "Party" or jointly as the "Parties." All capitalized terms not defined in this Release will have the meaning stated in the Franchise Agreement. |
|---|
| RECITALS |
| Franchisor and Franchisee entered into that certain franchise agreement dated |
| (Franchise Agreement), and Guarantor guaranteed the performance of the Franchisee under the Franchise |
| Agreement. Franchisee desires |
| to take some action (or make some amendment) to the Franchise Agreement |
| or desires for the Franchisor to take any action for which a General Release is called for in the Franchise |
| Agreement |
| or is required by Franchisor as part of such action, |
| and |
| as a material inducement to the |
| Franchisor approving the same, Franchisee and Guarantor have each agreed to provide this Release. |
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to the 2024 Bor Restoration Franchise Disclosure Document, the General Release is not necessarily required in all franchise agreements. The FDD indicates that the General Release is made on the date that all parties sign it, including BOR Franchising, LLC (Franchisor), the Franchisee, and the Guarantor.
The document states that the Franchisee may desire to take some action or make some amendment to the Franchise Agreement, or desires for the Franchisor to take any action for which a General Release is called for in the Franchise Agreement or is required by Franchisor as part of such action. It also mentions that in Maryland, the Franchise Agreement requires Franchisee to sign a general release as a condition of renewal, sale, termination, and franchise transfer.
This suggests that the General Release is typically required when there are specific actions or amendments to the Franchise Agreement, or under specific circumstances like renewal, sale, termination, or transfer of the franchise. However, in Maryland, the addendum specifies that these covenants do not apply to any liability under the Maryland Franchise Registration and Disclosure Law, and franchisees may bring lawsuits in Maryland for claims under this law within three years after the grant of the franchise. Therefore, the requirement for a General Release may vary based on the specific situation and the state in which the franchise operates.