In the Casiola General Release, what is the effect of the Release on the Releasee's assigns?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
IN EXCHANGE FOR GOOD AND VALUABLE CONSIDERATION FROM Casiola Franchise LLC AND/OR RELEASEE, AND WITH THE RECEIPT AND SUFFICIENCY OF SUCH CONSIDERATION BEING HEREBY ACKNOWLEDGED BY RELEASOR, RELEASOR DOES HEREBY, FOR ITSELF AND FOR RELEASOR'S SUCCESSORS AND ASSIGNS HEREBY RELEASE AND FOREVER DISCHARGE RELEASEE FROM:
Any and all claims including, but not limited to Franchise Claims (defined below), causes of action, violations, damages, actions, contracts, covenants, promises, judgments, suits, indebtedness, liabilities, accounts, and demands of every kind and nature (hereinafter all collectively referred to as the "Claims" or "Claim"), whether or not such Claims are presently known or unknown, disclosed or undisclosed, actual or potential, accrued or unaccrued and whether in law, admiralty, common law, or equity which against the Releasee, Releasor ever had, now has or hereafter can, shall or may, have for, upon, or by reason of any Claim, matter, cause or thing whatsoever from the beginning of the world to the Effective Date of this Release.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, the General Release extends to the Releasee's assigns. The Releasor, which is the party giving the release, agrees to release and forever discharge the Releasee from all claims. This release is made not only for the Releasor but also for the Releasor's successors and assigns.
In practical terms, this means that if a franchisee (Releasor) signs a general release, it not only prevents the franchisee from pursuing claims against Casiola (Releasee) but also prevents the franchisee's successors and assigns from doing so. This could occur if the franchisee sells the business or transfers their rights to another party. The new owner or assignee would also be bound by the terms of the release.
This provision is fairly standard in franchise agreements, as it protects the franchisor from potential future claims arising from the franchisee's business, even if the business changes hands. However, franchisees should carefully review the scope of the release to understand what claims are being waived and ensure they are comfortable with the implications for themselves and any potential future owners or assignees of their franchise.