Is there an exception to the covenant not to sue 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' 2025 Franchise Disclosure Document, a franchisee executing the General Release agrees to a covenant not to sue. This means the franchisee promises not to initiate or participate in any legal proceedings against Crave Cookies Franchising, its affiliates, and their personnel regarding any claims. However, there is an exception: the franchisee is not prevented from participating in a legal proceeding if required by law.
This covenant not to sue is part of a General Release that Crave Cookies may require a franchisee to sign in specific circumstances, such as when renewing the franchise agreement or as a condition for approving the sale of the franchise. The release covers all known and unknown claims arising from events up to the date of the release, including those related to the Franchise Agreement itself.
The inclusion of the phrase "except as required by law" provides a narrow but important exception to the covenant. This acknowledges that there may be legal obligations that compel a franchisee to participate in a legal proceeding, and the covenant does not prevent them from fulfilling those obligations. This is a fairly standard clause to ensure the agreement is enforceable and doesn't violate any laws that protect a party's right to due process or legal recourse.
Prospective franchisees should understand the implications of signing such a release, as it significantly limits their ability to pursue legal action against Crave Cookies. It is advisable to seek legal counsel to fully understand the scope and impact of the General Release and covenant not to sue before signing any such document.