Who is the Closet Storage Concepts General Release binding upon?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.4.3 Franchisee has executed a release of any and all claims against Franchisor and its parents, affiliates, and their equity owners, officers, directors, agents, employees, attorneys and accountants arising out of or related to this Agreement or any related agreement.
The release shall contain language and be of the form chosen by Franchisor, except the release shall not release any liability specifically provided for by any applicable state statute regulating franchising.
Our current form of release is attached to this Agreement as Exhibit "5".
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the general release is binding upon the franchisee and its parents, affiliates, and their equity owners, officers, directors, agents, employees, attorneys and accountants. This release covers any and all claims against Closet Storage Concepts and its related parties that arise from or are related to the Franchise Agreement or any related agreements.
This means that when renewing their franchise agreement, a franchisee must sign a release that prevents them from suing Closet Storage Concepts for any reason related to the franchise agreement, with the exception of liabilities specifically protected by state franchise laws. This is a standard practice in franchising, as it protects the franchisor from potential legal claims as the franchise relationship continues.
It is important to note that the release must be in a form and contain language chosen by Closet Storage Concepts. However, the release will not waive any liabilities specifically protected by state statutes regulating franchising. The current form of release is attached to the Franchise Agreement as Exhibit "5".