What is the definition of 'Franchisor Parties' in the Cicis franchise agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. Release.
You, on behalf of yourself, and your current and former parents, affiliates, and subsidiaries, and each of the foregoing person's or entity's respective direct or indirect owners, officers, directors, employees, representatives, predecessors, spouses, heirs, principals, attorneys, agents, successors, and assigns (collectively, the "Releasing Parties"), do hereby absolutely and irrevocably release and discharge us and our parents, subsidiaries, and affiliates, and each of the foregoing entity's current and former owners, officers, directors, employees, managers, agents, representatives, predecessors, successors, and assigns (the "Franchisor Parties"), of and from any and all claims, obligations, debts, proceedings, demands, causes of actions, rights to terminate and rescind, liabilities, losses, damages, and rights of every kind and nature whatsoever, whether known or unknown, suspected or unsuspected, at law or in equity (collectively, "Claims"), which any of them has, had or may have, from the beginning of time to the Effective Date, including, without limitation, those arising out of or relating in any way to the Original Franchise Agreement, the relationship created by the Original Franchise Agreement, or the development, ownership, or operation of the Restaurant.
You, on behalf of yourself and on behalf of the other Releasing Parties, further covenant not to sue any of the Franchisor Parties on any of the Claims released by this Section and warrant and represent that you and they have not assigned or otherwise transferred any Claims released by this Section.
If the Restaurant you operate under the Original Franchise and/or New Franchise Agreement is located in Maryland or if any of the Releasing Parties is a resident of Maryland, the following shall apply:
Any general release provided for hereunder shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, 'Franchisor Parties' are defined within the context of a release agreement. Specifically, it refers to Cicis and its parents, subsidiaries, and affiliates, as well as each of those entities' current and former owners, officers, directors, employees, managers, agents, representatives, predecessors, successors, and assigns.
This definition is important because it outlines who is protected by the release that a franchisee agrees to as part of the franchise agreement. By signing the release, the franchisee agrees to discharge the Franchisor Parties from any and all claims, obligations, debts, proceedings, demands, causes of actions, rights to terminate and rescind, liabilities, losses, damages, and rights of every kind and nature whatsoever, whether known or unknown, suspected or unsuspected, at law or in equity. This release covers a broad range of potential claims related to the Original Franchise Agreement, the relationship created by it, or the development, ownership, or operation of the Restaurant.
Prospective franchisees should carefully consider the scope of this release and understand that it extends beyond just the immediate franchisor entity to include a wide range of related parties. Franchisees should seek legal counsel to fully understand the implications of signing such a release, as it could impact their ability to pursue legal action against any of the Franchisor Parties in the future. It is also important to note that if the restaurant is located in Maryland or any of the releasing parties is a resident of Maryland, the general release does not apply to any liability under the Maryland Franchise Registration and Disclosure Law.