Does the Fly To Fit FDD include a form of general release?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
EXHIBIT E
FORM OF GENERAL RELEASE
[This is our current standard form of General Release. This document is not signed when you purchase a franchise. In circumstances such as a renewal of your franchise or as a condition of our approval of a sale of your franchise, we may require you to sign a general release.]
This General Release ("Release") is executed by the undersigned ("Releasor") in favor of Fly To Fit Franchise, LLC, a Delaware Limited Liability Company ("Fly To Fit Franchise").
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 Fly To Fit Franchise, 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.
Source: Item 23 — RECEIPTS (FDD pages 44–134)
What This Means (2024 FDD)
Yes, the 2024 Fly To Fit Franchise Disclosure Document includes a form of general release as Exhibit E. However, the FDD states that this release is not signed when purchasing a franchise. Fly To Fit may require a franchisee to sign a general release in circumstances such as a renewal of the franchise agreement or as a condition of Fly To Fit's approval of a sale of the franchise.
The general release included in the Fly To Fit FDD requires the franchisee (Releasor) to release Fly To Fit Franchise, 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").
The release also includes a Covenant Not to Sue, where the Releasor agrees not to initiate, prosecute, encourage, assist, or participate in any civil, criminal, or administrative proceeding or investigation against any Released Party with respect to any Claim.
It is important for a prospective Fly To Fit franchisee to understand the implications of signing a general release, as it could limit their ability to pursue legal action against the franchisor in the future. Franchisees should carefully review the terms of the release with legal counsel before signing.