factual

What is the trigger for the Franchisee to release Casa De Corazon from all claims?

Casa_De_Corazon Franchise · 2025 FDD

Answer from 2025 FDD Document

In consideration of the agreement of Casa Franchising, LLC ("Franchisor") to consent to the
assignment
by
("Franchisee")
of
its
Franchise
Agreement dated between Franchisee and Franchisor (the "Agreement"),
Franchisee hereby releases and forever discharges Franchisor, and all affiliates of Franchisor, and
their respective directors, officers, shareholders, employees and agents, in their corporate and
individual capacities, and their respective heirs, personal representatives, successors and assigns,
from any and all claims Franchisee may have against such parties, from the beginning of time to
the date hereof, known or unknown, whether in law or in equity, including, but not limited to, any
claims arising out of the offer or sale of any franchise to Franchisee, and any matters arising under
the Agreement.
NOTWITHSTANDING THE FOREGOING, THIS RELEASE DOES NOT RELEASE ANY
CLAIMS THE UNDERSIGNED MAY HAVE THAT MAY NOT BE RELEASED PURSUANT
TO THE FRANCHISE LAWS WHERE THE UNDERSIGNED IS A RESIDENT OR WHERE
THE FRANCHISED BUSINESS IS LOCATED, TO THE EXTENT REQUIRED BY
APPLICABLE LAW.
This general release does not apply with respect to claims arising under the Washington Franchise
Investment Protection Act, RCW 19.100, and the rules adopted thereunder.
Date

Source: Item 22 — CONTRACTS (FDD page 51)

What This Means (2025 FDD)

According to the 2025 Casa De Corazon Franchise Disclosure Document, the trigger for a franchisee to release Casa De Corazon from all claims occurs when Casa De Corazon consents to the assignment of the Franchise Agreement. In consideration for Casa De Corazon's consent to the assignment of the Franchise Agreement, the franchisee releases Casa De Corazon from any and all claims from the beginning of time to the date of the release. These claims include those arising out of the offer or sale of the franchise and any matters arising under the Franchise Agreement.

However, this release does not apply to any claims that cannot be released under franchise laws in the franchisee's state of residence or where the franchised business is located, to the extent required by applicable law. Additionally, the general release does not apply to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and its rules.

This means that if a Casa De Corazon franchisee decides to sell or transfer their franchise to another party, they will be required to sign a release that absolves Casa De Corazon from any past, present, or future claims related to the franchise agreement. However, the franchisee retains any rights or protections afforded to them by franchise laws in their jurisdiction, ensuring that they do not unknowingly waive any legal recourse they may have. This is a fairly standard practice in franchising, as it protects the franchisor from potential liabilities when a franchise changes hands.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.