What is the scope of the release provided by the Franchisee and Franchisee's Principal(s) to the Released Franchisor Party in the Crave General Release?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
lerk of State Corporation Commission 1300 East Main Street, 1st Floor Richmond, VA 23219 (804) 371-9733 | | WASHINGTON | Department of Financial Institutions | Director of Washington Financial | | | Securities Division | Institutions | | | P.O. Box 41200 | Securities Division | | | Olympia, WA 98504-1200 | 150 Israel Road, SW | | | (360) 902-8760 | Tumwater, WA 98501 | | WISCONSIN | Wisconsin Securities Commissioner Securities and Franchise Registration 345 W. Washington Avenue Madison, WI 53703 (608) 266-8559 | Commissioner of Securities of Wisconsin |
Exhibit H to the Crave Franchise Disclosure Document
GENERAL RELEASE
| ("Franchisee") and its principal(s): |
|---|
- (a) Franchisee and Franchisee's Principal(s) do, for themselves and their successors and assigns, hereby release and forever discharge generally Franchisor and any affiliate, wholly owned or controlled limited liability company, subsidiary, successor or assign thereof and any shareholder, officer, director, employee, agent, executor, administrator, estate, trustee or heir of any of them (the "Released Franchisor Party"), from any and all claims, demands, damages, injuries, agreements and contracts, indebtedness, accounts of every kind or nature, whether presently known or unknown, suspected or unsuspected, disclosed or undisclosed, actual or potential, which Franchisee or Franchisee's Principal(s) may now have, or may hereafter claim to have or to have acquired of whatever source or origin, arising out of or related to any and all transactions of any kind or character at any time prior to and including the date hereof, including generally any and all claims at law or in equity, those arising under the common law or state or federal statutes, rules or regulations such as, by way of example only, franchising, securities and antitrust statutes, rules or regulations, in any way arising out of or connected with the Franchise Agreement or this General Release, and further promises never from this day forward, directly or indirectly, to institute, prosecute, commence, join in, or generally attempt to assert or maintain any action thereon against any Released Franchisor Party, in any court or tribunal of the United States of America, any state thereof, or any other jurisdiction for any matter or claim arising before execution of this General Release. In the event Franchisee or Franchisee's Principal(s) breaches any of the promises, covenants, or undertakings made herein by any act or omission, Franchisee and Franchisee's Principal(s) shall pay, by way of indemnification, all costs and expenses of any Released Franchisor Party caused by the act or omission, including reasonable attorneys' fees and costs.
- (b) Franchisee and Franchisee's Principal(s) represent and warrant that no portion of any claim, right, demand, obligation, debt, guarantee, or cause of action released hereby has been assigned or transferred by Franchisee or Franchisee's Principal(s) to any other party, firm or entity in any manner including, but not limited to, assignment or transfer by subrogation or by operation of law. In the event that any claim, demand, or suit shall be made or institute against any Released Franchisor Party because of any such purported assignment, transfer or subrogation, Franchisee and Franchisee's Principal(s) agree to indemnify and hold such Released Franchisor Party free and harmless from and against any such claim, demand, or suit, including reasonable costs and attorneys' fees incurred in connection therewith.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the General Release requires the franchisee and their principals to release the franchisor from any and all claims, demands, damages, injuries, agreements, contracts, indebtedness, and accounts of every kind. This release covers both known and unknown issues that may have arisen from any transactions before the date of the release. It includes claims under common law, state, or federal statutes, such as those related to franchising, securities, and antitrust laws.
Specifically, the franchisee and their principals agree not to initiate or participate in any legal actions against the Released Franchisor Party in any court. If they breach this agreement, they are responsible for covering all costs and expenses incurred by the Released Franchisor Party, including reasonable attorney's fees. The franchisee also confirms that they have not been offered any inducements beyond what is stated in the General Release and that they are not relying on any unwritten statements.
Furthermore, the franchisee and their principals waive any rights or benefits under any law that might invalidate any part of the release, even if they are unaware of certain claims at the time of signing. They also agree not to bring any suits or claims against the franchisor and will defend and indemnify the franchisor against any such claims. This comprehensive release is a significant commitment, and franchisees should fully understand its implications before signing.