Under what circumstances might Crave Cookies require a franchisee to sign a general release?

According to Crave Cookies' 2025 Franchise Disclosure Document, a franchisee may be required to sign a general release under specific circumstances. This release is not a standard document signed when initially purchasing a franchise. Instead, Crave Cookies may require a franchisee to sign it during a renewal of their franchise agreement or as a condition for approving the sale of their franchise to another party.

The general release serves to protect Crave Cookies Franchising, LLC from any potential claims or liabilities related to the franchisee's operation up to the date of signing the release. By signing, the franchisee agrees to release Crave Cookies from any known or unknown claims arising from the Franchise Agreement or any events that have occurred. This includes a covenant not to sue Crave Cookies regarding any released claims.

This requirement is fairly common in franchising when a franchisee seeks to renew their agreement or transfer ownership. It allows Crave Cookies to ensure that all past issues are resolved and that they are not exposed to future litigation based on prior actions or agreements. Franchisees should carefully review the release with legal counsel to understand the full scope of what they are waiving before signing.

The document provided in the FDD includes clauses addressing representations and acknowledgments by the releasor, ensuring they have the authority to sign and have had the opportunity to consult with legal counsel. It also specifies that the release contains the entire agreement and does not apply to liabilities under the Maryland Franchise Registration and Disclosure Law or claims arising under the Washington Franchise Investment Protection Act.