Who are considered the 'Franchisor Parties' in the general release agreement for Cream?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You and your owners, jointly and severally, on behalf of themselves and their spouses and immediate family members, and each such foregoing person's or entity's respective affiliates, employees, owners, officers, directors, successors, assigns, spouses and immediate family members (the "Releasing Parties") hereby fully and forever unconditionally release and discharge us and our current and former affiliates, parents, subsidiaries, franchisees, area developers, owners, agents, insurers and our and their respective affiliates, employees, officers, directors, successors, assigns, owners, guarantors and other representatives (the "Franchisor Parties"), of and from any and all claims, obligations, debts, proceedings, demands, causes of action, rights to terminate and rescind, liabilities, losses, damages, and rights of every kind and nature whatsoever, and known or unknown, suspected or unsuspected, whether at law or in equity, which any of them has, had, or may have against any of the Franchisor Parties, from the beginning of time to the date of this document (together, Claims"), including any and all Claims in any way arising out of or relating to the Agreement or the relationship of the Releasing Parties with any of the Franchisor Parties. You and your owners, on your own behalf and the other Releasing Parties, further covenant not to sue any of the Franchisor Parties on any of the Claims released by this paragraph and represent that you have not assigned any of the Claims released by this paragraph to any individual or entity.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, the 'Franchisor Parties' in the general release agreement for Cream include Cream and its current and former affiliates, parents, subsidiaries, franchisees, area developers, owners, agents, insurers, and their respective affiliates, employees, officers, directors, successors, assigns, owners, guarantors, and other representatives.
This definition is important because it clarifies the scope of the release a franchisee must sign when renewing their franchise agreement. By signing this release, the franchisee agrees to discharge all of these 'Franchisor Parties' from any and all claims, known or unknown, that they may have against them. This is a broad release that covers a wide range of potential claims, so franchisees should carefully consider its implications before signing.
It is typical in franchising for franchisors to require a general release upon renewal to protect themselves from potential future claims related to the franchise relationship. However, franchisees should be aware of the breadth of this release and consult with legal counsel to understand the rights they are waiving. The FDD also notes that if the franchised business is located in Maryland or if the franchisee is a resident of Maryland, any general release provided for shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.