What is the 'Release' in the context of the Floyds 99 General Release?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS GENERAL RELEASE ("Release") is made effective as of the day of, 20 by ("Franchisee") in favor of FLOYD'S 99 FRANCHISING, LLC, a Colorado limited liability company ("Franchisor") (collectively referred to as "Parties"). The Parties have entered into that certain Franchise Agreement dated ("Franchise Agreement") which governs the development and operation of a FLOYD'S 99 Barbershop ("FLOYD'S 99 Shop" or "Barbershop") (to the extent not otherwise defined herein, all initial-capitalized references shall have the same meaning as set forth in the Franchise Agreement). The Franchisee desires to transfer the Franchise Agreement, the ownership of the Franchisee, or the FLOYD'S 99 Shops or some or all of the assets of the Barbershop.
OR
The Franchisee desires to enter into a successor to the Franchise Agreement.
The Franchisor desires to consent to the Franchisee's request subject to the Franchisee's compliance with the terms and conditions set forth in the Franchise Agreement including, without limitation, the execution and delivery by the Franchisee to the Franchisor of this Release.
NOW, THEREFORE, in consideration of the foregoing, the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties hereby agree as follows:
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the 'Release' refers to the General Release agreement itself. This agreement is made between the franchisee and Floyd's 99 Franchising, LLC, the franchisor. The General Release becomes effective on a specific date agreed upon by both parties.
The document indicates that the franchisee may want to transfer the Franchise Agreement, ownership of the franchise, or the Floyd's 99 Shops, or some or all of the assets of the Barbershop. Alternatively, the franchisee might want to enter into a successor agreement to the existing Franchise Agreement. In either scenario, Floyds 99 requires the franchisee to execute and deliver the General Release as a condition of the franchisor's consent to the franchisee's request.
In consideration of the promises outlined in the agreement and other valuable considerations, both Floyds 99 and the franchisee agree to the terms of the General Release. This suggests that the General Release is a legally binding document that outlines the conditions and considerations under which the franchisee is released from certain obligations or liabilities, typically in connection with a transfer, sale, or succession of the franchise.