factual

Who is the 'Releasee' in the Desi District General Release?

Desi_District Franchise · 2024 FDD

Answer from 2024 FDD Document

This General Release ("Release") is executed by the undersigned ("Releasor") in favor of Desi District Franchise Group, LLC, a Delaware Limited Liability Company ("Desi District Franchise Group").

Background Statement: [describe circumstances of Release]

Releasor agrees as follows:

  • **1.

Release.** Releasor (on behalf of itself and its parents, subsidiaries and affiliates and their respective past and present officers, directors, shareholders, managers, members, partners, agents, and employees (collectively, the "Releasing Parties")) hereby releases Desi District Franchise Group, its affiliates, and their respective directors, officers, shareholders, employees, and agents (collectively, the "Released Parties") from any and all claims, causes of action, suits, debts, agreements, promises, demands, liabilities, contractual rights and/or obligations, of whatever nature, known or unknown, which any Releasing Party now has or ever had against any Released Party based upon and/or arising out of events that occurred through the date hereof, including without limitation, anything arising out of the Franchise Agreement (collectively, "Claims").

  • **2.

Covenant Not to Sue.** Releasor (on behalf of all Releasing Parties) covenants not to initiate, prosecute, encourage, assist, or (except as required by law) participate in any civil, criminal, or administrative proceeding or investigation in any court, agency, or other forum, either affirmatively or by way of cross-claim, defense, or counterclaim, against any Released Party with respect to any Claim.

Source: Item 23 — RECEIPTS (FDD pages 52–140)

What This Means (2024 FDD)

According to Desi District's 2024 Franchise Disclosure Document, the 'Releasee' in the General Release is Desi District Franchise Group, LLC, along with its affiliates, and their respective directors, officers, shareholders, employees, and agents. This means that the Releasor, who is the franchisee, is releasing Desi District Franchise Group from any and all claims, causes of action, suits, debts, agreements, promises, demands, liabilities, contractual rights and/or obligations.

This release covers any issues known or unknown, that the franchisee has or ever had against Desi District. It specifically includes anything arising out of the Franchise Agreement. The franchisee also agrees not to initiate any legal proceedings against Desi District Franchise Group or assist others in doing so.

This type of general release is common in franchising, particularly during franchise renewal or when a franchisee sells their business. It is important for a prospective Desi District franchisee to understand the implications of signing such a release, as it can significantly limit their legal recourse against the franchisor. Franchisees should consult with an attorney before signing any release to fully understand their rights and obligations.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.