What is the purpose of the Bor Restoration General Release?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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. |
| NOW, THEREFORE, for and in consideration of the mutual covenants found herein, for that |
| consideration stated below, and for other good and valuable consideration, the adequacy of which is |
| admitted by all Parties |
| hereto, each of the Guarantors personally and unconditionally agrees as follows: |
| COVENANTS |
| 1. |
| Franchisee, for and on behalf of itself, its officers, directors, shareholders, and employees, |
| and on behalf of any parent corporation or subsidiary, business entity, successor, assignee, and their |
| officers, directors, shareholders, and employees, (Franchisee Parties) and Guarantor for himself or herself |
| and for and on behalf of its family members and for and in consideration of: the Franchisor granting to the |
| Franchisee the right to do the following;; and for |
| other good and valuable consideration, all of which is deemed adequate by all Parties hereto, do each |
| (personally, jointly and severally) from the beginning of time to the Effective Date of this Release, release, |
| indemnify, and forever forgive and discharge Franchisor and the Franchisor Parties from all |
| known or |
| unknown, liquidated or unliquidated, fixed, direct or indirect, foreseeable or unforeseeable, matured or |
| unmatured, absolute |
| or contingent, determined or determinable, |
| equitable or legal claims; claims sounding |
| in Applicable Law; causes of action; complaints; direct, indirect, punitive or consequential damages; |
| judgments; business losses; awards; injury, or any other right or action (separately and together a "Claim" |
| or the "Claims") which relate in any way to: (i) the manner and |
| method by which Franchisor delivered the |
| FDD to Franchisee, and Guarantor (ii) the content, or lack of content of the FDD (as such content may have |
| been required by any Applicable Law); (iii) the performance or failure of performance of Franchisor or |
| Franchisor Parties in reference to any federal-required or state-required disclosure obligations and |
| requirements; (iv) any oral, written, express or implied promises, statements, disclosures and the like |
| relating in any way to the Franchise Agreement or the franchise relationship between the Franchisor and |
| Franchisor Parties, Franchisee, Guarantor and the Franchisee Parties; (v) the performance or the failure to |
| perform of Franchisor or any Franchisor Party under the Franchise Agreement; (vi) the performance or |
| failure to perform of Franchisor or any Franchisor Party under any other oral or written, express or implied |
| agreement, covenant, or document whether or not found in the Franchise Agreement; and, (vii) any other |
| Claim sounding in equity or law. Notwithstanding the preceding, nothing in this Release is intended to |
| disclaim any representations made in the Franchise Disclosure Document. |
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the General Release is an agreement made between BOR Franchising, LLC (the franchisor), the franchisee, and any guarantor, effective on the date all parties sign it. The purpose of this release is tied to actions or amendments to the Franchise Agreement that the franchisee desires, or actions the franchisor takes that necessitate a general release, as specified in the Franchise Agreement. As an incentive for the franchisor's approval, the franchisee and guarantor agree to provide this release.
The General Release involves the franchisee, on behalf of themselves and related parties, and the guarantor, releasing, indemnifying, and discharging Bor Restoration and its parties from all known and unknown claims. These claims relate to various aspects, including the delivery and content of the Franchise Disclosure Document (FDD), the performance of disclosure obligations, and any promises or statements related to the Franchise Agreement or the franchise relationship. It covers potential issues arising from the performance or failure of performance by either party under the Franchise Agreement or any other agreements.
This release specifically addresses potential claims related to the FDD, the franchise agreement, and the overall franchise relationship. However, the document clarifies that the release does not disclaim any representations made within the Franchise Disclosure Document itself. This means that while franchisees waive certain rights to make claims, Bor Restoration remains accountable for the information presented in the FDD.
For a prospective Bor Restoration franchisee, understanding the scope and implications of this General Release is crucial. It is advisable to carefully review the Franchise Agreement and consult with legal counsel to fully grasp the rights being waived and the protections that remain in place, particularly those related to the accuracy and completeness of the FDD.