What section of the Crown Gold Exchange agreement describes the general release of liability?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
t be: (1) delivered personally; (2) sent by registered or certified U.S. mail with return receipt requested; or (3) sent via overnight courier. Notwithstanding the foregoing, Crown Gold Franchising may amend the Manual, give binding notice of changes to System Standards, and deliver notices of default by electronic mail or other electronic communication.
- 18.10 Holdover. If Franchisee continues operating the Business after the expiration of the term without a renewal agreement or successor franchise agreement executed by the parties in accordance with Section 3.2, then at any time (regardless of any course of dealing by the parties), Crown Gold Franchising may by giving written notice to Franchisee (the "Holdover Notice") either (i) require Franchisee to cease operating the Business and comply with all post-closing obligations effective immediately upon giving notice or effective on such other date as Crown Gold Franchising specifies, or (ii) bind Franchisee to a renewal term of 5 years, and deem Franchi
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, section 18.10 and section 15.2(viii) of the franchise agreement describe the general release of liability.
Specifically, section 18.10 addresses situations where a franchisee continues to operate the business after the franchise term expires without a formal renewal. In such cases, Crown Gold Exchange can issue a 'Holdover Notice,' requiring the franchisee to either cease operations immediately or be bound to a renewal term of 5 years. By continuing operations, the franchisee and its owners are deemed to have made a general release of liability as described in Section 3.2(vi).
Additionally, section 15.2(viii) states that when a franchisee seeks to transfer the franchise, the franchisee, its owners, and the transferee and its owners must execute a general release of Crown Gold Exchange in a form satisfactory to Crown Gold Exchange. This ensures that Crown Gold Exchange is protected from potential liabilities arising from the previous franchisee's operations before the transfer is finalized.