Under the Closet Storage Concepts agreement, what entities are released by the franchisee?
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, as a condition of renewal, the franchisee must execute a release of claims against Closet Storage Concepts and related parties. Specifically, the franchisee must release any and all claims against Closet Storage Concepts and its parents, affiliates, and their equity owners, officers, directors, agents, employees, attorneys, and accountants.
This release covers any claims arising out of or related to the Franchise Agreement or any related agreement. The release document's language and form will be determined by Closet Storage Concepts.
However, the release will not waive any liability specifically protected by any applicable state statute regulating franchising. A sample release form is included as Exhibit "5" in the Franchise Agreement.
This requirement is fairly standard in franchising, as franchisors want to avoid future legal disputes with franchisees, especially upon renewal. Franchisees should carefully review the release and understand its implications before signing.