Are immediate family members of owners included in the definition of 'Releasing Parties' 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 definition of "Releasing Parties" includes immediate family members of the owners. This is detailed in the sample general release agreement within the FDD. The agreement specifies that the release extends to the owners, their spouses, immediate family members, and their respective affiliates, employees, owners, officers, directors, successors, and assigns.
This means that when a Cream franchisee signs a general release, it not only covers the franchisee and their business but also their spouses and immediate family members. This has significant implications, as these individuals are also giving up any potential claims against Cream. The release covers all claims, known or unknown, from the beginning of time to the date of the document, arising out of or relating to the franchise agreement or the relationship between the parties.
Prospective franchisees should carefully consider this broad scope and understand that their family members will also be bound by the terms of the release. It is advisable to consult with legal counsel to fully understand the implications before signing any such agreement. This is especially important if the franchisee or any of the releasing parties are residents of California, as a specific section 1542 acknowledgment applies, requiring them to expressly waive rights related to unknown claims.