Does the release extend to the parents, subsidiaries, and affiliates of Crave Cookies Franchising?
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").
- **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 general release extends to the parents, subsidiaries, and affiliates of the franchisee (referred to as the "Releasor"). The release is executed in favor of Crave Cookies Franchising, LLC. The "Releasing Parties" include the Releasor (the franchisee) and its parents, subsidiaries, and affiliates, along with their respective past and present officers, directors, shareholders, managers, members, partners, agents, and employees.
This means that by signing the release, the franchisee agrees that not only they themselves, but also their related business entities and personnel, will not pursue any claims against Crave Cookies Franchising. The "Released Parties" who are protected by this release include Crave Cookies Franchising, its affiliates, and their respective directors, officers, shareholders, employees, and agents.
The scope of the release covers any and all claims, causes of action, suits, debts, agreements, promises, demands, liabilities, contractual rights, and/or obligations, whether known or unknown, that the Releasing Parties have or ever had against any Released Party. This includes anything arising out of the Franchise Agreement. Furthermore, the Releasor agrees not to initiate or participate in any legal proceedings against any Released Party with respect to any Claim.
This type of general release is common in franchising when a franchise is renewed or sold. It protects Crave Cookies from potential future legal issues related to the franchise relationship. A prospective franchisee should carefully review the terms of the release with legal counsel to fully understand the implications before signing.