Is the requirement to sign a general release waivable for a Cool Binz franchise transfer?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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- you, your principals, and the transferee (if we have a prior relationship with the transferee) have signed a general release, in a form satisfactory to us, of any and all claims against us and our shareholders, officers, directors, employees, and agents (such requirement to sign a general release is subject to change in our sole discretion);
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the requirement to sign a general release during a franchise transfer is subject to change at Cool Binz's discretion. Specifically, the franchisee, their principals, and the transferee must sign a general release of claims against Cool Binz and its associates. However, this requirement can be altered based on Cool Binz's decision.
This means that while a general release is typically required, Cool Binz retains the flexibility to waive this requirement in certain situations. This could depend on factors such as the transferee's background, the nature of the transfer, or Cool Binz's current policies. Prospective franchisees should be aware that this discretion exists and inquire about the specific circumstances under which a release might be waived.
It's important to note that in Minnesota, such general releases cannot waive claims arising under Minn. Rule 2860.4400D, which protects franchisees from liability releases imposed by Minnesota Statutes, Chapter 80C. Additionally, no agreement signed at the start of the franchise can waive claims under state franchise law or disclaim reliance on statements made by Cool Binz. This provision takes precedence over any conflicting terms in other documents related to the franchise.