Are Cicis franchisees required to obtain a release and covenant not to sue from their owners?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
LES TILE | 133 |
EXHIBIT K SAMPLE GENERAL RELEASE
SAMPLE GENERAL RELEASE
| ON SMILE LLC ("we," "us," or "our") and the undersigned franchisee ("you" or |
|---|
| "your"), currently are parties to a certain franchise agreement dated |
| , 20 |
| (the "Agreement"). You have asked us to take the following action or to agree to |
| the following request: |
| We have the right under the |
| Agreement to obtain a general release from you and your owners as a condition of taking this |
| action or agreeing to this request. Therefore, we are willing to take the action or agree to the |
| request specified above if you and your owners give us the release and covenant not to sue provided |
| below in this document. You and your owners are willing to give us the release and covenant not |
| to sue provided below as partial consideration for our willingness to take the action or agree to the |
| request described above. |
Consistent with the previous introduction, you, on your own behalf and on behalf of your affiliated entities, and each such foregoing person's or entity's successors, heirs, executors, administrators, personal representatives, agents, assigns, partners, owners, managers, directors, officers, principals and employees (collectively, the "Releasing Parties"), hereby forever release and discharge us and our current and former affiliated entities, and each such entity's officers, directors, owners, managers, principals, employees, agents, representatives, successors, and assigns (collectively, the "Franchisor Parties") of and from any and all claims, damages (known and unknown), demands, causes of action, suits, duties, liabilities, and agreements of any nature and kind (collectively, "Claims") that you and any of the other Releasing Parties now has, ever had, or, but for this document, hereafter would or could have against any of the Franchisor Parties, including without limitation, (1) arising out of or related to the Franchisor Parties' obligations under the Agreement, or (2) otherwise arising from or related to your and the other Releasing Parties' relationship, from the beginning of time to the date of your signature below, with any of the Franchisor Parties. You, on your own behalf 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 paragraph and represent that you have not assigned any of the Claims released by this paragraph to any individual or entity who is not bound by this paragraph.
We also are entitled to release and covenant not to sue from your owners. By his, her, or their separate signatures below, your owners likewise grant to us the release and covenant not to sue provided above.
If the franchise you operate under the 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.
[SIGNATURE PAGE FOLLOWS]
IN WITNESS WHEREOF, the parties have executed and delivered this Agreement on the date stated below.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 31–38)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis has the right to obtain a general release from the franchisee and their owners as a condition of taking a specific action or agreeing to a request from the franchisee. In these instances, Cicis is willing to proceed with the action or agreement only if both the franchisee and their owners provide a release and covenant not to sue.
The release extends to the franchisee, their affiliated entities, and their successors, heirs, and employees, collectively referred to as the "Releasing Parties." These parties release Cicis and its affiliates from all claims and liabilities arising from the franchise agreement or the relationship between the parties, from the beginning of time to the date of signing the release. The franchisee also agrees not to sue Cicis on any of the released claims.
Cicis is also entitled to a release and covenant not to sue from the franchisee's owners, who must sign separately to grant the release. 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 any liability under the Maryland Franchise Registration and Disclosure Law.