factual

Does the Endless Summer Sweets Guaranty allow for the compromise or release of any claims?

Endless_Summer_Sweets Franchise · 2024 FDD

Answer from 2024 FDD Document

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.

[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 pursuant to a negotiated settlement after the franchise agreement is in effect and where the parties are represented by independent counsel.

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 does allow for the compromise or release of claims. The General Release is a standard form that Endless Summer Sweets may require a franchisee to sign in circumstances such as a renewal of the franchise or as a condition of approval for a sale of the franchise.

Specifically, the Releasor, on behalf of itself and related parties, releases Endless Summer Sweets and its affiliates from all claims, causes of action, suits, debts, agreements, promises, demands, liabilities, contractual rights, and obligations, whether known or unknown, arising from events through the date of the release, including those arising from the Franchise Agreement. The Releasor also agrees not to initiate or participate in any legal proceedings against Endless Summer Sweets regarding any released claim.

The Releasor also confirms that they are the sole owner of all claims and have the authority to sign the release. The document states that the release in Section 1 acts as a complete defense to any claim. The release is governed by the dispute resolution, governing law, and venue provisions outlined in the Franchise Agreement. However, Maryland residents' rights under the Maryland Franchise Registration and Disclosure Law are not waived, and Washington residents' rights under the Washington Franchise Investment Protection Act are only waivable under specific negotiated settlement conditions with independent counsel.

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.