What is the covenant made by the franchisee in the Cicis general release agreement?

According to Cicis's 2025 Franchise Disclosure Document, as part of the general release agreement, the franchisee agrees not to sue Cicis and its affiliated entities regarding any claims related to the franchise agreement or the relationship between the franchisee and Cicis. This covenant extends to the franchisee's affiliated entities, successors, heirs, and other related parties. The franchisee also confirms that they have not assigned any of these claims to any individual or entity not bound by this agreement.

This means that by signing the general release, a Cicis franchisee gives up their right to take legal action against Cicis for any past or present issues, whether known or unknown, related to the franchise agreement or their overall relationship. This includes potential claims for damages, losses, or any other grievances. The release covers the period from the beginning of time up to the date the franchisee signs the agreement.

Cicis also requires the franchisee's owners to provide a similar release and covenant not to sue. However, if the franchise is located in Maryland, or if any of the releasing parties are residents of Maryland, the general release does not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. This ensures that franchisees in Maryland retain their rights under state franchise law, despite the general release agreement.

This type of release is not uncommon in franchising when a franchisor is making an accommodation for a franchisee. It is important for a prospective Cicis franchisee to fully understand the implications of this release and covenant not to sue, as it significantly limits their legal recourse against the franchisor. Franchisees should consult with an attorney to assess the potential risks and benefits before signing such an agreement.