factual

Does the 'Covenant Not to Sue' in the Endless Summer Sweets General Release have any exceptions?

Endless_Summer_Sweets Franchise · 2024 FDD

Answer from 2024 FDD Document

[Maryland Residents]: This Release shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.

[Washington Residents]: A release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act except when execu

Source: Item 23 — RECEIPTS (FDD pages 39–125)

What This Means (2024 FDD)

According to the 2024 Endless Summer Sweets Franchise Disclosure Document, the General Release includes a 'Covenant Not to Sue.' This covenant means the Releasor agrees not to initiate or participate in any legal proceedings against the Released Parties (Endless Summer Sweets Franchising, Inc., its affiliates, etc.) concerning any claim covered by the release. However, there are exceptions for Maryland and Washington residents.

For Maryland residents, the release does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This means that Maryland franchisees retain their rights to pursue claims under Maryland's franchise law, regardless of signing the general release.

Similarly, for Washington residents, a release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act, except when executed as part of a settlement or resolution of a dispute. This ensures that Washington franchisees generally do not waive their rights under Washington's franchise law unless it's part of settling a specific dispute. This protection is in place to safeguard franchisees' rights under state laws, ensuring they are not inadvertently waived by signing a general release, except under specific circumstances like settling a dispute.

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.