What does the 'Covenant Not to Sue' section of the Crave Cookies General Release prohibit?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- **2.
Covenant Not to Sue.** Releasor (on behalf of all Releasing Parties) covenants not to initiate, prosecute, encourage, assist, or (except as required by law) participate in any civil, criminal, or administrative proceeding or investigation in any court, agency, or other forum, either affirmatively or by way of cross-claim, defense, or counterclaim, against any Released Party with respect to any Claim.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the 'Covenant Not to Sue' section within the General Release has specific implications for franchisees. This section prevents the franchisee, along with their related parties, from initiating or participating in any legal actions against Crave Cookies or its affiliates.
Specifically, the franchisee agrees not to start or support any civil, criminal, or administrative proceedings or investigations in any forum, whether directly or indirectly, concerning any claim against Crave Cookies. This includes refraining from actions like cross-claims, defenses, or counterclaims.
This covenant is a significant legal commitment. Franchisees should understand that signing such a release could limit their future legal options against Crave Cookies, potentially affecting their rights if disputes arise during the franchise term or afterward. It is important to note that this General Release is not signed when purchasing a franchise, but may be required in circumstances such as a renewal or sale of the franchise.