Who are the 'Franchisor Parties' that the Ella Cafe Franchisee Parties release from claims?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
| : | FRANCHISEE: |
|---|---|
| Ella Coffee Company, LLC, | |
| a Delaware limited liability company | |
| By: | By: |
| Anthony Perera, President | [name, title] |
EXHIBIT E
SAMPLE FORM OF GENERAL RELEASE
This general release (the "General Release") is made and entered into on ______,____ by and between Ella Coffee Company, LLC ("Franchisor"), ____ ("Franchisee"), ____ and Error! R eference source not found. (together with the Franchisee, the "Franchisee Parties"). For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Franchisee Parties agree as follows.
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- To the maximum extent permitted by applicable law, the Franchisee Parties on behalf of themselves and each of their past and present parents, subsidiaries, affiliates, predecessors, successors, assigns, officers, directors, shareholders, partners, owners, members, managers, agents, attorneys, employees, and representatives (together with the Franchisee Parties, the "Releasing Parties") do remise, release, waive, and forever discharge Ella Coffee Company, LLC, Cool Coffee Holdings, LLC, and each of their respective past and present parents, subsidiaries, affiliates, predecessors, successors, assigns, officers, directors, shareholders, partners, owners, members, managers, agents, attorneys, employees, and representatives (collectively, the "Franchisor Parties") from any and all claims, demands, obligations, liabilities, actions, proceedings, agreements, debts, demands, damages, accounts, charges, invoices, discounts, incentives, allowances, controversies, expenses, attorneys' fees, suits, arbitrations, and causes of action whatsoever, in law or equity, whether known or unknown, past, present, or future, which the Releasing Parties have, have had, claim to have, or may have against the Franchisor Parties including, but not limited to, any and all claims and damages in any way arising out of or related to (1) that franchise agreement between Ella C
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the 'Franchisor Parties' that the 'Franchisee Parties' release from claims consist of Ella Coffee Company, LLC, Cool Coffee Holdings, LLC, and their respective past and present parents, subsidiaries, affiliates, predecessors, successors, assigns, officers, directors, shareholders, partners, owners, members, managers, agents, attorneys, employees, and representatives.
In essence, this clause means that franchisees, along with anyone affiliated with them (such as family members, business partners, or employees), agree to waive their rights to sue Ella Cafe and its related entities under a broad range of circumstances. This includes claims related to the franchise agreement itself, the sale of the franchise, alleged misrepresentations, and any disputes arising from the franchisee-franchisor relationship. The release covers both known and unknown claims, meaning that franchisees are giving up their right to sue even for issues they are not yet aware of.
This type of release is common in franchise agreements. Prospective franchisees should carefully consider the implications of this clause and consult with an attorney to fully understand the rights they are waiving. It is important to recognize that this release is mutual, meaning that Ella Cafe is also releasing the franchisee from certain claims. However, the scope of the franchisee's release is typically narrower than the franchisor's.
Before signing the franchise agreement, a prospective Ella Cafe franchisee should carefully review this section with legal counsel to fully understand the scope of the release and its potential impact on their rights. Understanding the full extent of this waiver is crucial before committing to the franchise.