Who are considered the 'Releasing 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 Cream's 2025 Franchise Disclosure Document, the Releasing Parties in the general release agreement are defined as the franchisee and their owners, jointly and severally, acting on behalf of themselves, their spouses, and immediate family members. This extends to each of these individuals' or entities' respective affiliates, employees, owners, officers, directors, successors, assigns, spouses, and immediate family members.
In essence, this means that when a franchisee signs a general release, they are not only releasing claims on their own behalf but also on behalf of a wide range of related individuals and entities. This includes family members, business partners, employees, and anyone else affiliated with the franchisee's business. The release covers any claims they may have against Cream and its related parties.
This broad definition is important for prospective Cream franchisees to understand. By signing the release, they are giving up the right to sue Cream not only for themselves but also for a potentially large group of people and entities connected to their franchise. Franchisees should carefully consider the implications of this broad release and consult with legal counsel to fully understand their rights and obligations before signing.