Is a general release required from the Chem Dry franchisee, its principals, and the transferee during a transfer?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
- n.
FRANCHISEE, your principals, and the transferee (if we have a prior relationship with the transferee) sign a general release, in a form satisfactory to CDI, releasing to the extent permitted by applicable law, any and all claims against CDI and its affiliates, shareholders, officers, directors, employees, and agents (such requirement to sign a general release is subject to change in our sole discretion);
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, a general release is required from the Chem Dry franchisee, its principals, and the transferee (if Chem Dry has a prior relationship with the transferee) during a transfer. This release, in a form satisfactory to Chem Dry, releases any and all claims against Chem Dry and its affiliates, shareholders, officers, directors, employees, and agents to the extent permitted by applicable law.
This requirement for a general release is subject to change at Chem Dry's sole discretion. This means that Chem Dry retains the right to waive or modify this requirement as they see fit.
For a prospective Chem Dry franchisee, this implies that during a franchise transfer, they, their principals, and the transferee might be required to sign a release that waives any potential claims against Chem Dry. This is a standard practice in franchising, as it protects the franchisor from potential legal issues arising from the transfer. Franchisees should carefully review the release and understand its implications before signing.