Who does the Closet Storage Concepts General Release inure to the benefit of?
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 the 2025 Closet Storage Concepts FDD, a franchisee must execute a release of claims against Closet Storage Concepts and related parties as a condition for renewal. Specifically, the release benefits Closet Storage Concepts, its parents, affiliates, equity owners, officers, directors, agents, employees, attorneys, and accountants.
This release covers any claims arising from or related to the Franchise Agreement or any related agreement. However, the release will not cover any liability specifically provided for by any applicable state statute regulating franchising.
Closet Storage Concepts specifies that the release should contain language and be of the form chosen by them, and the current form of release is attached to the agreement as Exhibit "5". This requirement ensures that Closet Storage Concepts is protected from potential legal claims by franchisees who are renewing their agreements, except where state laws prevent such a release.