What release must Face Foundrie franchisees and their owners execute as part of a transfer?

According to Face Foundrie's 2025 Franchise Disclosure Document, as part of a franchise transfer, the franchisee, its owners, and affiliates must execute a general release. This release must be in a form and substance that is satisfactory to Face Foundrie. The release covers any and all claims against Face Foundrie, its affiliates, stockholders, officers, directors, employees, agents, successors, and assigns.

This requirement means that when a Face Foundrie franchisee decides to sell their business, they, along with their owners and affiliates, must sign a document releasing Face Foundrie from any potential legal claims they might have. This is a standard practice in franchising to protect the franchisor from future liabilities related to the transferred franchise.

However, the FDD also notes some limitations regarding such releases, particularly concerning the Washington Franchise Investment Protection Act. Specifically, any release or waiver that attempts to waive compliance with provisions under this Act is void unless it meets certain conditions, such as being executed pursuant to a negotiated settlement with independent legal representation. This suggests that while Face Foundrie requires a general release, the enforceability of that release may be subject to state-specific franchise laws, like those in Washington, which aim to protect franchisees' rights.

Prospective Face Foundrie franchisees should be aware of this requirement and understand the implications of signing such a release. It is advisable to consult with an attorney to fully understand the scope and enforceability of the release, especially in light of state franchise laws that may provide additional protections.