What does 'Related Parties' mean in the City Wide release agreement?
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 release agreement includes a definition of "Related Parties." This definition clarifies who, besides City Wide itself, is protected by the release that a franchisee signs.
Specifically, "Related Parties" encompasses a broad range of individuals and entities connected to City Wide. This includes predecessors, affiliates, agents, employees, successors, assigns, and their respective officers, directors, shareholders, heirs, executors, and representatives. In essence, the release extends to anyone who has a significant relationship with City Wide, protecting them from potential claims related to the franchise agreement.
For a prospective City Wide franchisee, this means that when signing the release, they are not only releasing City Wide from potential claims but also all of these "Related Parties." This is a standard legal practice to ensure that all parties involved in the franchise operation are protected from future litigation. Franchisees should carefully consider the implications of this broad release and consult with legal counsel to fully understand their rights and obligations before signing.