Under the Card My Yard general release, who is included in the definition of 'Releasors'?

According to Card My Yard's 2025 Franchise Disclosure Document, a general release must be executed by the franchisee and their owners that releases claims against Card My Yard, its affiliates, and their respective officers, directors, shareholders, partners, members, agents, representatives, independent contractors, servants, and employees, past and present, in their corporate and individual capacities. This release includes, without limitation, claims arising under the Franchise Agreement or under federal, state, or local laws, rules, regulations, or orders.

In practical terms, this means that as part of renewing their franchise agreement, a franchisee must agree to release Card My Yard from any potential legal claims. This requirement extends not only to the franchisee as a business entity but also to the individuals who own the franchise. The release covers a broad range of potential claims, including those related to the franchise agreement itself and those arising from any applicable laws or regulations.

For a prospective franchisee, this underscores the importance of understanding all aspects of the franchise agreement and any potential legal issues before renewing. It also highlights the need to maintain a positive and compliant relationship with Card My Yard throughout the franchise term, as any unresolved disputes or grievances could be waived upon renewal. The franchisee should seek legal counsel to fully understand the implications of signing such a release.

This type of general release is a common practice in franchising, as it allows the franchisor to start the renewal term with a clean slate, free from potential past liabilities. However, it places the onus on the franchisee to carefully assess their legal position before agreeing to the release. Franchisees should carefully document any issues or concerns during the initial term and seek resolution before the renewal process begins.