Is a developer required to sign the general release for Engineering For Kids?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
The following is our current general release language that we expect to include in a release that a franchisee, developer, and/or transferor may sign as part of a renewal or an approved transfer. We may, in our sole discretion, periodically modify the release.
Franchisee, its officers and directors, its owners, and their respective agents, heirs, administrators, successors, and assigns (the "Franchisee Group"), hereby forever release and discharge, and forever hold harmless Engineering for Kids International, LLC, its current and former affiliates and predecessors, and their respective shareholders, partners, members, directors, officers, agents, representatives, heirs, administrators, successors, and assigns (the "Franchisor Group"), from any and all claims, demands, debts, liabilities, actions or causes of action, costs, agreements, promises, and expenses of every kind and nature, at law or in equity, whether known or unknown, foreseen and unforeseen, liquidated or unliquidated, which the Franchisee Group and/or its owners had, have, or may have against any member of the Franchisor Group, including, without limitation, any claims or causes of action arising from, in connection with or in any way related or pertaining, directly or indirectly, to the Franchise Agreement, the relationship created by the Franchise Agreement, or the development, ownership, or operation of an Engineering For Kids Business. The Franchisee Group further indemnifies and holds the Franchisor Group harmless against, and agrees to reimburse them for any loss, liability, expense, or damages (actual or consequential) including, without limitation, reasonable attorneys', accountants', and expert witness fees, costs of investigation and proof of facts, court costs, and other litigation and travel and living expenses, which any member of the Franchisor Group may suffer with respect to any claims or causes of action which any customer, creditor, or other third party now has, ever had, or hereafter would or could have, as a result of, arising from, or under the Franchise Agreement or the Engineering For Kids Business. The Franchisee Group and its owners represent and warrant that they have not made an assignment or any other transfer of any interest in the claims, causes of action, suits, debts, agreements, or promises described herein.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, a developer may be required to sign a general release as part of a renewal or approved transfer. The document states that the general release is expected to include language that a franchisee, developer, and/or transferor may sign. This release serves to discharge Engineering For Kids International, LLC from any claims, demands, debts, liabilities, actions, or causes of action related to the franchise agreement or the operation of the Engineering For Kids business.
In practical terms, this means that if you are an Engineering For Kids developer, you might be asked to sign a release that prevents you from suing Engineering For Kids for any reason related to your franchise agreement. This could include claims related to lost profits, breach of contract, or any other issue that might arise during the course of your relationship with Engineering For Kids. The release also requires the signing party to indemnify and hold harmless Engineering For Kids against any losses, liabilities, expenses, or damages, including attorney's fees, resulting from claims by customers or other third parties.
The general release extends to the franchisee's officers, directors, owners, agents, heirs, administrators, successors, and assigns, collectively referred to as the "Franchisee Group." By signing the release, the Franchisee Group represents and warrants that they have not assigned or transferred any interest in the claims, causes of action, suits, debts, agreements, or promises described in the release. Engineering For Kids retains the discretion to modify the release periodically.
Prospective franchisees should carefully review the general release and understand its implications before signing. It is advisable to seek legal counsel to fully understand the rights being waived and the potential liabilities being assumed. Franchisees should also be aware that the terms of the Successor Franchise Agreement may differ materially from the original agreement, potentially requiring different fees and obligations upon renewal.