Who is required to execute a general release when transferring a Burneys Sweets More franchise?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee; Owners; guarantors of the Franchisee; for themselves and on behalf of their respective predecessors, affiliates, shareholders, members, partners, officers, directors, managers, employees, agents, representatives, attorneys, accountants, personal representatives, heirs, executors, administrators, successors, and assigns execute a general release, in a form prescribed by Franchisor, releasing Franchisor; Franchisor's predecessors, affiliates; and their respective shareholders, members, partners, officers, directors, managers, employees, agents, representatives, attorneys, accountants, guarantors, successors, and assigns, in both their corporate and individual capacities, from any and all claims, causes of action, demands, debts, liabilities, obligations, fees, costs and expenses, including without limitation, claims and causes of action arising under federal, state and local laws, rules, regulations and ordinances, arising prior to and including the date the transfer becomes effective.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, when a franchise is transferred, several parties must execute a general release. Specifically, the franchisee, the owners, and any guarantors of the franchisee are required to execute this release.
This release extends not only to these individuals directly but also on behalf of their respective predecessors, affiliates, shareholders, members, partners, officers, directors, managers, employees, agents, representatives, attorneys, accountants, personal representatives, heirs, executors, administrators, successors, and assigns. The release is in a form prescribed by Burneys Sweets More.
The purpose of this release is to protect Burneys Sweets More and its related parties from any claims, causes of action, demands, debts, liabilities, obligations, fees, costs, and expenses that may arise prior to or on the date the transfer becomes effective. This includes claims arising under federal, state, and local laws, rules, regulations, and ordinances. This requirement ensures that Burneys Sweets More is free from potential legal issues stemming from the previous franchisee's operation of the business.