What does the Endless Summer Sweets General Release cover regarding claims?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
anchisor (including reasonable attorney fees) in enforcing this Guaranty. If multiple Guarantors sign this Guaranty, each will have joint and several liability.
Agreed to by: Address: Address: Address:
ATTACHMENT 4 TO FRANCHISE AGREEMENT
FORM OF GENERAL RELEASE
[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. Releasor acknowledges that the release in Section 1 is a complete defense to any Claim.
- 4. Miscellaneous. If any of the provisions of this Release are held invalid for any reason, the remainder of this Release will not be affected and will remain in full force and effect. In the event of any dispute concerning this Release, the dispute resolution, governing law, and venue provisions of the Franchise Agreement shall apply. Releasor agrees to take any actions and sign any documents that Franchisor reasonably requests to effectuate the purposes of this Release. This Release contains the entire agreement of the parties concerning the subject matter hereof.
5. State Addenda.
[Maryland Residents]: This Release shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to the 2024 Endless Summer Sweets FDD, the General Release covers a broad spectrum of claims that a franchisee (referred to as "Releasor") might have against Endless Summer Sweets Franchising, Inc. (referred to as "Franchisor"). This release extends to the Releasor's parents, subsidiaries, affiliates, and their respective officers, directors, shareholders, managers, members, partners, agents, and employees, collectively termed the "Releasing Parties." It protects Endless Summer Sweets, its affiliates, and their respective directors, officers, shareholders, employees, and agents, known as the "Released Parties."
The claims covered include any and all causes of action, suits, debts, agreements, promises, demands, liabilities, contractual rights, and obligations, whether known or unknown, that the Releasing Parties have or ever had against any Released Party. These claims must be based upon or arise out of events that occurred up to the date of the release, including anything arising out of the Franchise Agreement itself. The Releasor also agrees not to initiate or participate in any legal proceedings against the Released Parties concerning any claim.
However, the FDD specifies exceptions for residents of Maryland and Washington. For Maryland residents, the release does not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. For Washington residents, the release does not include rights under the Washington Franchise Investment Protection Act unless it is part of a negotiated settlement after the franchise agreement is in effect and both parties are represented by independent counsel. This indicates that Endless Summer Sweets aims to protect itself from potential legal actions related to the franchise agreement, while also acknowledging certain state-specific legal protections for franchisees.