Who are considered 'Released Parties' in the general release outlined in the Carvel franchise agreement?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
Sign a general release in a form we prepare, releasing us and our parents, subsidiaries, and affiliates and the respective directors, officers, owners, shareholders, partners, members, managers, representatives, employees, agents, attorneys, contractors, predecessors, successors, heirs and assigns of each of the foregoing (in their corporate and individual capacities) (collectively, the "Released Parties"), from all claims you may have against the Released Parties as of the date of the Renewal Agreement. Your Owners must also sign the general release required in the previous sentence. Released Parties is not intended to include suppliers or distributors to you that are not affiliated with us and are not acting as our agent.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the "Released Parties" in the general release that a franchisee must sign upon renewal include Carvel and its parents, subsidiaries, and affiliates. The definition extends to the respective directors, officers, owners, shareholders, partners, members, managers, representatives, employees, agents, attorneys, contractors, predecessors, successors, heirs, and assigns of each of the foregoing, acting in both their corporate and individual capacities. However, the definition of Released Parties specifically excludes suppliers or distributors to the franchisee that are not affiliated with Carvel and are not acting as Carvel's agent.
This means that when a Carvel franchisee renews their agreement, they are agreeing to release all of these listed parties from any claims they may have against them up to the date of the renewal agreement. This is a broad release, covering a wide range of potential claims, and it is a standard practice in franchising to protect the franchisor and its related entities from future litigation.
It is important for a prospective Carvel franchisee to understand the scope of this release and to consider seeking legal counsel to fully understand its implications. Franchisees should be aware that they are giving up their right to sue these parties for any past issues, which could have significant consequences if there are unresolved disputes or potential claims.