What is the purpose of the signature section for the Guarantors in the Bor Restoration FDD?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
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© 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 | ||
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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. |
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| 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. |
| 2. |
| Franchisee for itself and on behalf of the Franchisee Parties and Guarantor each agree and |
| expressly state that this Release was made in contemplation of not only known Claims and the consequences |
| © 2024 All rights reserved BOR Franchising, LLC Gen 3-30-24 |
| 69 |
| Initials |
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thereof but also in contemplation of the possibility that each such Party identified in this paragraph may or will sustain future damages presently unknown to them and which accrued on or before the Effective Date of this Release but which were not asserted until after that date. By executing this Release Franchisee for itself and on behalf of the Franchisee Parties intend to release Franchisor and the Franchisor Parties, jointly and severally from liability for all known, unknown, and unforeseen Claims, losses, expenses, damages, costs, liabilities, business losses, and the consequences thereof.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the signature section for the Guarantors is part of a General Release. This release is made on the date that all parties sign it, referred to as the Effective Date, and involves BOR Franchising, LLC (the Franchisor), the Franchisee, and the Guarantor. The document specifies that all capitalized terms not defined in the release will have the meanings stated in the Franchise Agreement.
The recitals section indicates that the Guarantor has guaranteed the performance of the Franchisee under the Franchise Agreement. The Franchisee may desire to take some action or make an 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. As a material inducement to the Franchisor approving the same, Franchisee and Guarantor have each agreed to provide this Release.
By signing the release, the Franchisee and Guarantor agree to release, indemnify, and forever discharge Bor Restoration from all known and unknown claims related to the Franchise Agreement, the FDD, and the franchise relationship. This includes claims related to the delivery and content of the FDD, performance under the Franchise Agreement, and any oral or written agreements. However, the release does not disclaim any representations made in the Franchise Disclosure Document. The Guarantors also agree to be jointly and severally liable for the entire amount due, regardless of contribution from another guarantor, as stated in the enforcement provisions.