What is the scope of 'Released Claims' that the Embassy Suites franchisee releases in the letter agreement?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) Franchisee hereby fully and forever releases, discharges, and agrees to indemnify, defend, and hold harmless Franchisor, its predecessors, successors and assigns and each of their respective former and present officers, employees, directors, shareholders, partners, members, parents, subsidiaries, affiliates, alter egos, representatives, agents, and attorneys (collectively, the "Released Parties"), from any and all Claims, demands, liens, actions, agreements, suits, causes of action, obligations, controversies, debts, costs, attorney's fees, expenses, damages, judgments, orders, and liabilities of whatever kind or nature in law, equity, or otherwise, whether now known or suspected which have existed, may or do exist ("Released Claims"), based on any facts, events, or omissions occurring before the execution of this letter agreement which arise out of, concern, pertain, or relate in any way to the Franchise Agreement [IF APPLICABLE: or the Existing Comfort Letter ].
Franchisee acknowledges that it may hereafter discover Claims presently unknown or unsuspected, or facts in
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, the franchisee releases the 'Released Parties' from 'Released Claims' in the letter agreement. The 'Released Parties' include Embassy Suites (the Franchisor), its predecessors, successors, assigns, and their respective former and present officers, employees, directors, shareholders, partners, members, parents, subsidiaries, affiliates, alter egos, representatives, agents, and attorneys.
The 'Released Claims' encompass any and all claims, demands, liens, actions, agreements, suits, causes of action, obligations, controversies, debts, costs, attorney's fees, expenses, damages, judgments, orders, and liabilities of whatever kind or nature in law, equity, or otherwise, whether now known or suspected, which have existed, may exist, or do exist. These claims are based on any facts, events, or omissions occurring before the execution of the letter agreement, which arise out of, concern, pertain, or relate in any way to the Franchise Agreement, or the Existing Comfort Letter if applicable.
The franchisee acknowledges that they may later discover claims or facts that were previously unknown or unsuspected but agrees to fully and finally settle and release all such matters and claims relative thereto. This release covers all claims that do now exist, may exist, or have existed between the Released Parties and the franchisee. This comprehensive release is part of the consideration for the letter agreement relating to the loan.