Under what circumstances might Chocolate Fish Coffee require a franchisee to sign a general release?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
nd name, trademarks, and commercial symbols, provided that Franchisor will be liable to Landlord for any damage Franchisor or its designee causes by such removal.
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- No Liability. By executing this Rider, Franchisor does not assume any liability with respect to the Leased Premises or any obligation as Tenant under the Lease.
Executed by: LANDLORD: TENANT: CHOCOLATE FISH FRANCHISING, LLC
Attachment 5 to Franchise Agreement
FORM OF GENERAL RELEASE
[This is our current standard form of General Release. This document is not signed when you purchase a franchise. In circumstances such as a renewal of your franchise or as a condition of our approval of a sale of your franchise, we may require you to sign a general release.]
This General Release ("Release") is executed by the undersigned ("Releasor") in favor of Chocolate Fish Franchising, LLC, a Wyoming Limited Liability Company ("Chocolate Fish Franchising").
Background Statement: [describe circumstances of Release]
Releasor agrees as follows:
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Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, a franchisee may be required to sign a general release under specific circumstances related to the franchise agreement. This release is not a standard document signed when initially purchasing a franchise. However, Chocolate Fish Coffee may require a franchisee to sign a general release in situations such as the renewal of the franchise agreement or as a condition for approving the sale of the franchise to another party.
Additionally, if a franchisee continues to operate the Chocolate Fish Coffee business after the expiration of the franchise term without executing a renewal agreement, Chocolate Fish Coffee has the option to bind the franchisee to a renewal term of 5 years. By doing so, the franchisee and their owners will be deemed to have made a general release of liability.
The general release form included in the FDD states that the franchisee agrees to take any actions and sign any documents that Chocolate Fish Coffee reasonably requests to effectuate the purposes of the release. Franchisees should carefully review the circumstances under which a general release may be required and understand the implications of signing such a release, especially concerning potential liabilities and future rights.