Who must execute the general release of claims for an Endless Summer Sweets franchise renewal?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
[This is our current standard form of General Release. This document is not signed when you purchase a franchise. In circumstances such as a renewal of your franchise or as a condition of our approval of a sale of your franchise, we may require you to sign a general release.]
This General Release ("Release") is executed by the undersigned ("Releasor") in favor of Endless Summer Sweets Franchising, Inc., a California limited liability company ("Franchisor").
Background Statement: [describe circumstances of Release]
Releasor agrees as follows:
- **1.
Release.** Releasor (on behalf of itself and its parents, subsidiaries and affiliates and their respective past and present officers, directors, shareholders, managers, members, partners, agents, and employees (collectively, the "Releasing Parties")) hereby releases Franchisor, its affiliates, and their respective directors, officers, shareholders, employees, and agents (collectively, the "Released Parties") from any and all claims, causes of action, suits, debts, agreements, promises, demands, liabilities, contractual rights and/or obligations, of whatever nature, known or unknown, which any Releasing Party now has or ever had against any Released Party based upon and/or arising out of events that occurred through the date hereof, including without limitation, anything arising out of the Franchise Agreement (collectively, "Claims").
- **2.
Covenant Not to Sue.** Releasor (on behalf of all Releasing Parties) covenants not to initiate, prosecute, encourage, assist, or (except as required by law) participate in any civil, criminal, or administrative proceeding or investigation in any court, agency, or other forum, either affirmatively or by way of cross-claim, defense, or counterclaim, against any Released Party with respect to any Claim.
- **3.
Representations and Acknowledgments.** Releasor represents and warrants that: (i) Releasor is the sole owner of all Claims, and that no Releasing Party has assigned or transferred, or purported to assign or transfer, to any person or entity, any Claim; (ii) Releasor has full power and authority to sign this Release; and (iii) this Release has been voluntarily and knowingly signed after Releasor has had the opportunity to consult with counsel of Releasor's choice.
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to Endless Summer Sweets' 2024 Franchise Disclosure Document, the "Releasor" must execute the general release of claims. The FDD states that the franchisor, Endless Summer Sweets Franchising, Inc., may require a general release as a condition of franchise renewal. The Releasor, defined as the undersigned party, agrees to release Endless Summer Sweets Franchising, Inc. from any and all claims, causes of action, and liabilities arising out of events that occurred through the date of the release, including anything arising out of the Franchise Agreement.
This release extends to the Releasor's parents, subsidiaries, affiliates, and their respective officers, directors, shareholders, managers, members, partners, agents, and employees, collectively referred to as the "Releasing Parties." The release benefits Endless Summer Sweets, its affiliates, and their respective directors, officers, shareholders, employees, and agents, collectively referred to as the "Released Parties."
The Releasor also agrees not to initiate or participate in any legal proceedings against the Released Parties with respect to any claim. The Releasor represents and warrants that they are the sole owner of all claims and have the authority to sign the release. They also acknowledge that they have voluntarily and knowingly signed the release after having the opportunity to consult with legal counsel.
For a prospective Endless Summer Sweets franchisee, this means that upon renewal of their franchise agreement, they (as the Releasor) may be required to sign a general release, giving up any existing or potential claims against Endless Summer Sweets. Franchisees in Maryland and Washington have specific stipulations regarding the release of rights under their respective state's franchise laws, which are detailed in the FDD.