Does the release cover anything arising out of the Franchise Agreement with Crave Cookies?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
This General Release ("Release") is executed by the undersigned ("Releasor") in favor of Crave Cookies Franchising, LLC, a Utah limited liability company ("Crave Cookies Franchising").
Background Statement: [describe circumstances of Release]
Releasor agrees as follows:
- **1.
Release.** 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 the 2025 Crave Cookies FDD, the General Release form includes a release of claims arising out of the Franchise Agreement. Specifically, the release covers 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. This means that by signing the release, the franchisee is giving up their right to sue Crave Cookies for any reason related to the Franchise Agreement.
The FDD states that this release is not signed when purchasing a franchise but may be required in circumstances such as a renewal of your franchise or as a condition of approval of a sale of your franchise. The Releasor also agrees to a Covenant Not to Sue, preventing them from initiating or participating in any legal proceedings against Crave Cookies Franchising.
However, there are some limitations to this release. For example, the release shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law. Additionally, for franchisees in the State of Washington, this general release does not apply with respect to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder. Therefore, prospective franchisees should carefully review the release and understand its implications, especially concerning their rights under state franchise laws.