What is the covenant not to sue that Releasing Parties agree to in the Dog Haus Release Agreement?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
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- COVENANTS NOT TO SUE. Releasing Parties hereby irrevocably covenant that they will not, directly or indirectly: (i) commence, initiate, or cause to be commenced or initiated any proceeding, claim, or demand of any kind against Franchisor Released Parties based upon any Claims released under this Release Agreement; or (ii) assist or encourage any person or entity to investigate, inquire into, commence, initiate, or cause to be commenced or initiated any proceeding, claim, or demand of any kind against Franchisor Released Parties based upon any Claims released under this Release Agreement.
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- INDEMNITY. Without in any way limiting any of the rights and remedies otherwise available to the Franchisor Released Parties, Releasing Parties shall defend, indemnify and hold harmless each Franchisor Released Party from and against all Claims whether or not involving third-party Claims, arising directly or indirectly from or in connection with: (i) the assertion by or on behalf of Releasing Parties or their Constituents of any Claim or other matter released pursuant to this Release Agreement; (ii) the assertion by any third party of any Claim or demand against any Franchisor Released Party which Claim or demand arises directly or indirectly from, or in connection with, any Claims or other matters released pursuant to this Release Agreement; (iii) any breach of representations, warranties or covenants hereunder by Releasing Parties or its Constituents; or (iv) the Franchise Agreement, the Restaurant, the Franchised Location, and/or any and all claims of creditors, customers, vendors, suppliers or invitees of the Restaurant, or other third parties, for obligations incurred and/or acts or omissions to act by Franchisee, both prior to and following the Effective Date.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the Releasing Parties agree to a covenant not to sue as part of the Release Agreement. This covenant means the Releasing Parties irrevocably promise not to directly or indirectly initiate any legal proceedings, claims, or demands against the Franchisor Released Parties. This prohibition applies to any claims released under the Release Agreement.
Furthermore, the Releasing Parties also agree not to assist or encourage anyone else to investigate, inquire into, or initiate any legal actions against the Franchisor Released Parties. This part of the covenant extends the protection to prevent others from pursuing claims on behalf of the Releasing Parties related to the released claims.
In addition to the covenant not to sue, the Releasing Parties must also defend, indemnify, and hold harmless the Franchisor Released Parties from any claims arising from the Releasing Parties' breach of the agreement. This includes claims by third parties, such as creditors or customers, related to the franchisee's actions both before and after the effective date of the agreement. This ensures that Dog Haus is protected from legal liabilities and expenses resulting from disputes covered by the release.