Does the Canine Dimensions agreement extend to successors and assigns?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
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- By executing this Mutual General Release Agreement, Canine Dimensions and Franchisee, for themselves and their respective successors, represent and warrant that their representations herein are true and correct and that each of them has the right and authority to enter into and to accept the terms and covenants of this Mutual General Release Agreement, and that no third party has or claims an interest in any claim released by Paragraph 1 of this Mutual General Release Agreement.
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- Canine Dimensions and Franchisee, for themselves and their respective Designees, acknowledge that Paragraphs 1 and 4 of this Mutual General Release Agreement shall be a complete defense to any claim that is subject to the terms thereof; consent to the entry of a temporary or permanent injunction, whether affirmative or negative, to prevent or end any breach hereof; and agree to indemnify each other and their successors for any and all costs and expenses incurred as a result of their breach of Paragraphs 1 and 3 hereof, including reasonable attorney's fees.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, the Mutual General Release Agreement extends to the successors and assigns of both Canine Dimensions and the franchisee. Specifically, when Canine Dimensions and the franchisee execute the Mutual General Release Agreement, they represent and warrant, for themselves and their respective successors, that they have the right and authority to enter into and accept the terms of the agreement. This indicates that the obligations and benefits outlined in the agreement are transferable to future owners or assignees of both parties.
This provision is important because it ensures that the terms of the Mutual General Release Agreement remain in effect even if the ownership or structure of either Canine Dimensions or the franchisee changes. For example, if Canine Dimensions is sold to a new company, the new owners are still bound by the terms of the release agreement. Similarly, if the franchisee sells their business, the new owner will also be subject to the agreement.
The Mutual General Release Agreement also states that Canine Dimensions and the franchisee agree to indemnify each other and their successors for any costs or expenses incurred as a result of their breach of specific paragraphs within the agreement. This further reinforces the idea that the obligations of the agreement extend to successors, providing an additional layer of protection for both parties. This clause ensures that if either party violates the agreement, their successors will be held responsible for any resulting damages or expenses.