Who is the 'Releasor' in the Chocolate Bash General Release?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
This General Release ("Release") is executed by the undersigned ("Releasor") in favor of Chocolate Bash Franchising, LLC, a Wyoming limited liability company ("CB Franchising").
Background Statement: [describe circumstances of Release]
Releasor agrees as follows:
- **1.
Release.** Releasor (on behalf of itself and its parents, subsidiaries and affiliates and their respective past and present officers, directors, shareholders, managers, members, partners, agents, and employees (collectively, the "Releasing Parties")) hereby releases CB Franchising, its affiliates, and their respective directors, officers, shareholders, employees, and agents (collectively, the "Released Parties") from any and all claims, causes of action, suits, debts, agreements, promises, demands, liabilities, contractual rights and/or obligations, of whatever nature, known or unknown, which any Releasing Party now has or ever had against any Released Party based upon and/or arising out of events that occurred through the date hereof, including without limitation, anything arising out of the Franchise Agreement (collectively, "Claims").
- **2.
Covenant Not to Sue.** Releasor (on behalf of all Releasing Parties) covenants not to initiate, prosecute, encourage, assist, or (except as required by law) participate in any civil, criminal, or administrative proceeding or investigation in any court, agency, or other forum, either affirmatively or by way of cross-claim, defense, or counterclaim, against any Released Party with respect to any Claim.
- **3.
Representations and Acknowledgments.** Releasor represents and warrants that: (i) Releasor is the sole owner of all Claims, and that no Releasing Party has assigned or transferred, or purported to assign or transfer, to any person or entity, any Claim; (ii) Releasor has full power and authority to sign this Release; and (iii) this Release has been voluntarily and knowingly signed after Releasor has had the opportunity to consult with counsel of Releasor's choice.
Releasor acknowledges that the release in Section 1 is a complete defense to any Claim.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the 'Releasor' in the General Release is the 'undersigned'. The Releasor is the party who is executing the General Release in favor of Chocolate Bash Franchising, LLC. The Releasor agrees to release Chocolate Bash Franchising, LLC from any and all claims, causes of action, suits, debts, agreements, promises, demands, liabilities, contractual rights and/or obligations.
This means that a Chocolate Bash franchisee, under certain circumstances such as a franchise renewal or the sale of their franchise, may be required to sign a document releasing Chocolate Bash from any potential legal claims they might have. This is a common practice in franchising to ensure a clean break or continuation of the relationship under new terms.
The General Release also includes a covenant not to sue, preventing the Releasor from initiating or participating in any legal proceedings against Chocolate Bash. The Releasor also represents that they are the sole owner of all claims and have the authority to sign the release. This is intended to provide Chocolate Bash with a legal defense against any future claims related to the franchise agreement.