When must a Carvel franchisee sign a general release?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Conditions for Renewal Term. If we approve your Application, you must:
- (iii) 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, a franchisee must sign a general release under specific circumstances related to franchise renewal and in conjunction with signing the Franchise Agreement.
Specifically, if a Carvel franchisee seeks to renew their franchise agreement, they must sign a general release in a form prepared by Carvel. This release must be signed before the renewal term begins, releasing Carvel and its related parties from all claims against them as of the date of the Renewal Agreement. This requirement extends to the franchisee's owners, who must also sign the general release.
Additionally, the Franchisee Disclosure Acknowledgement indicates that franchisees must sign and date the acknowledgement the same day they sign the Franchise Agreement and pay their franchise fee. This acknowledgement is designed to confirm that the franchisee understands the limitations on claims they may make regarding the purchase and operation of their Carvel franchise. However, this acknowledgement does not apply to franchisees in certain states with franchise disclosure laws, including Maryland.