What parties are included in the definition of 'Franchisee Parties' for the purposes of the release in the Circle K Franchise Agreement?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee and its successors and assigns, affiliates, directors, officers, and shareholders and on behalf of any other party claiming an interest through them (collectively and individually referred to as the "Franchisee Parties" for purposes of this Section 4), release and forever discharge Franchisor, its predecessors, successors, assigns, affiliates, directors, officers, shareholders, and employees (collectively and individually referred to as the "Franchisor Parties" for purposes of this Section 4), of and from any and all claims, debts, liabilities, demands, obligations, costs, expenses, actions and causes of action, whether known or unknown, vested or contingent, which Franchisee Parties may now or in the future own or hold, that in any way relate to the Franchise Agreement, Other Agreements, or any other agreement between Franchisor and Franchisee, the Authorized Location, or the relationship between Franchisor and Franchisee through the Effective Date (collectively, the "Franchisee Parties Claims"), for known or unknown damages or other losses, including but not limited to any alleged violations of any deceptive or unfair trade practices laws, franchise laws, or other local, municipal, state, federal, or other laws, statutes, rules or regulations, and any alleged violations of the Franchise Agreement, Other Agreements or any other related agreement between Franchisor and Franchisee through the Effective Date.
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the term "Franchisee Parties" encompasses several entities associated with the franchisee. This definition is specifically used in the context of a release, where the franchisee agrees to discharge Circle K from potential claims.
Specifically, "Franchisee Parties" includes the franchisee, their successors and assigns, affiliates, directors, officers, and shareholders. It also extends to any other party claiming an interest through them. This broad definition ensures that the release covers a wide range of individuals and entities that could potentially bring claims against Circle K related to the franchise agreement.
This is a standard practice in franchising to protect the franchisor from future litigation. Prospective Circle K franchisees should carefully review this section of the Franchise Agreement with their legal counsel to fully understand the scope of the release and its implications for them and related parties.