What is the Releasor covenanting not to do regarding legal proceedings against Crave Cookies?
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's 2025 Franchise Disclosure Document, the Releasor, on behalf of themselves and related parties, agrees not to initiate or participate in legal actions against Crave Cookies. This includes refraining from starting or supporting any civil, criminal, or administrative proceedings or investigations in any court, agency, or forum. This commitment extends to actions taken affirmatively or defensively, such as through cross-claims, defenses, or counterclaims.
This "Covenant Not to Sue" is a standard clause in general release agreements, meaning that the Releasor is giving up their right to take legal action against Crave Cookies. This waiver applies to any claim related to events that occurred up to the date of the release, including those arising from the Franchise Agreement itself.
For a prospective Crave Cookies franchisee, this means that signing a general release, if required (for example, during a franchise renewal or sale), would prevent them from pursuing any legal claims against Crave Cookies, even if those claims were previously unknown. It is important for franchisees to fully understand the implications of such a release and to seek legal counsel before signing, as it could significantly limit their legal options in the future.