What definition does City Wide use for 'Related Parties' in the context of the release?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee hereby absolutely and forever releases and discharges CITY WIDE and its Related Parties (as defined below), from and against any and all Claims (as defined below) of Franchisee arising out of or relating to the offer or sale of the Franchise Agreement(s), including violations of any federal or state law, rule, or regulation pertaining thereto. "Related Parties" means predecessors, affiliates, agents, employees, successors, assigns, and their respective officers, directors, shareholders, heirs, executors, and representatives. "Claims" means any and all claims, proceedings, demands, causes of actions, rights to terminate and rescind, liabilities, losses, damages, and rights of every kind and nature whatsoever, whether now known or unknown, suspected or unsuspected, at law or in equity, which the releasing party now has, owns or holds, at any time before this time ever had, owned or held, or at any time after this time has, owns or holds. Franchisee hereby irrevocably covenants not to assert, or to initiate any suit or proceeding based in whole or in part upon any Claim released hereunder.
Source: Item 23 — RECEIPT (FDD pages 65–271)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the term 'Related Parties' in the context of the release refers to a broad group of individuals and entities connected to City Wide. This definition is important because the release agreement protects not only City Wide itself but also all of its related parties from any claims arising from the franchise agreement.
Specifically, 'Related Parties' includes predecessors, affiliates, agents, employees, successors, assigns, and their respective officers, directors, shareholders, heirs, executors, and representatives. This comprehensive list ensures that a wide range of individuals and entities associated with City Wide are shielded from potential legal claims by the franchisee.
For a prospective City Wide franchisee, this definition means that when signing the release, they are waiving their rights to make claims against not only the franchisor but also all of these related individuals and entities. It is crucial for franchisees to understand the full scope of this release and to seek legal counsel to fully understand the implications before signing.