Who is required to sign a general release of all claims when transferring a Dq Treat license?

According to the 2025 Dq Treat Franchise Disclosure Document, when transferring a license, the licensee, each owner, and each guarantor must sign a general release of all claims. This release covers any claims arising out of or relating to the operating agreement, the licensee's restaurant, or the business relationship between the parties. The release must be in the form designated by Dq Treat, and it releases Dq Treat and its affiliates from any liability.

This requirement means that anyone with a significant stake or obligation related to the Dq Treat franchise, such as the licensee themselves, the owners of the business, and any guarantors, must legally relinquish any potential claims against Dq Treat upon the transfer of the franchise. This is a fairly standard practice in franchising to ensure a clean break and prevent future legal disputes related to the previous ownership.

However, prospective franchisees should be aware of the scope of this release and understand what rights they are giving up. It is advisable to consult with an attorney to fully understand the implications of signing such a release. Additionally, franchisees should be aware of any state-specific regulations that may limit the enforceability of such releases, as highlighted by the information regarding Minnesota law in the FDD.

It is important to note that the transferee, the party acquiring the Dq Treat franchise, is not explicitly mentioned as being required to sign this general release. The transferee will, however, be required to sign Dq Treat's then-current operating agreement, which may have materially different terms and conditions.