Who is included in the definition of 'Releasing Parties' when releasing claims against Crave Cookies?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Releasor (on behalf of itself and its parents, subsidiaries and affiliates and their respective past and present officers, directors, shareholders, managers, members, partners, agents, and employees (collectively, the "Releasing Parties")) hereby releases Crave Cookies Franchising, its affiliates, and their respective directors, officers, shareholders, employees, and agents (collectively, the "Released Parties") from any and all claims, causes of action, suits, debts, agreements, promises, demands, liabilities, contractual rights and/or obligations, of whatever nature, known or unknown, which any Releasing Party now has or ever had against any Released Party based upon and/or arising out of events that occurred through the date hereof, including without limitation, anything arising out of the Franchise Agreement (collectively, "Claims").
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the 'Releasing Parties' encompass the Releasor (the franchisee) along with their parents, subsidiaries, and affiliates. This extends to the respective past and present officers, directors, shareholders, managers, members, partners, agents, and employees of these entities. This definition is relevant when a franchisee is required to sign a general release, potentially during franchise renewal or the sale of their franchise.
The general release requires the Releasing Parties to release Crave Cookies Franchising, its affiliates, and their respective directors, officers, shareholders, employees, and agents from any and all claims. This includes a broad range of potential issues, such as contractual rights, liabilities, and obligations arising from events up to the date of the release, including those related to the Franchise Agreement.
The franchisee also agrees to a covenant not to sue, preventing them (and all Releasing Parties) from initiating or participating in any legal proceedings against Crave Cookies. Franchisees should carefully consider the implications of such a release, particularly regarding any existing or potential future claims they may have against the franchisor. Given the breadth of the release, it is advisable for franchisees to seek legal counsel before signing such a document.