Is a transferor 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 the 2025 Engineering For Kids Franchise Disclosure Document, a transferor may be required to sign a general release as part of an approved transfer. The FDD specifies that the general release is expected to be included in a release that a franchisee, developer, and/or transferor may sign as part of an approved transfer. This release serves to discharge Engineering for Kids International, LLC from any claims related to the Franchise Agreement or the operation of the Engineering For Kids Business.
The general release includes the franchisee, its officers, directors, owners, agents, heirs, administrators, successors, and assigns, collectively referred to as the "Franchisee Group." By signing the release, the Franchisee Group releases Engineering for Kids International, LLC, along with its affiliates, predecessors, shareholders, partners, members, directors, officers, agents, representatives, heirs, administrators, successors, and assigns (the "Franchisor Group"), from any claims or liabilities. This encompasses all types of claims, whether known or unknown, related to the Franchise Agreement or the Engineering For Kids Business.
This requirement ensures that Engineering For Kids is protected from potential future claims arising from the previous franchisee's operation of the business. For a prospective franchisee, this means that if they plan to transfer their franchise in the future, they, along with any involved parties like owners or directors, will need to sign a release to finalize the transfer. This is a standard practice in franchising to provide legal protection to the franchisor during ownership changes.