Is a Form of General Release included as an exhibit in the Desi District FDD?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
Issuance Date: June 17th, 2024
I received a disclosure document dated 6/17/2024, that included the following Exhibits:
- A. State Administrators and Agents for Service of Process
- B. Franchise Agreement (with Guaranty and Non-Compete Agreement)
- C. Multi-Unit Development Agreement
- D. Rider to Lease Agreement
- E. Form of General Release
- F. Financial Statements
- G. Brand Standards Manual Table of Contents
- H. Current and Former Franchisees
- I. State Addenda to Disclosure Document
- J. State Addenda to Agreements
Source: Item 23 — RECEIPTS (FDD pages 52–140)
What This Means (2024 FDD)
According to the 2024 Desi District Franchise Disclosure Document, a Form of General Release is included as Exhibit E. The receipt included in the FDD lists the exhibits provided, which include the Form of General Release.
The Form of General Release is Desi District's current standard form. However, franchisees do not sign this document when initially purchasing a franchise. Desi District may require a franchisee to sign a general release in circumstances such as a franchise renewal or as a condition of approving a sale of the franchise.
The General Release requires the franchisee to release Desi District Franchise Group from all claims, causes of action, and liabilities arising from events through the date of the release, including those related to the Franchise Agreement. The franchisee also agrees not to initiate or participate in any legal proceedings against Desi District regarding these claims.
The franchisee represents that they have the authority to sign the release and have had the opportunity to consult with legal counsel. The release is governed by the dispute resolution, governing law, and venue provisions outlined in the Franchise Agreement. This release does not apply to any liability under the Maryland Franchise Registration and Disclosure Law.