Is the Fly To Fit General Release applicable to all states?
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.
- **3.
Source: Item 23 — RECEIPTS (FDD pages 44–134)
What This Means (2024 FDD)
According to the 2024 Fly To Fit Franchise Disclosure Document, the applicability of the General Release varies by state. While Fly To Fit may present a standard form of General Release, certain states have specific regulations that modify or restrict its enforceability. For example, the North Dakota Rider explicitly states that franchisees are not required to sign a general release upon renewal of the agreement. Similarly, addenda for states like Maryland, New York, and Washington include provisions that may supersede or modify aspects of the franchise agreement, including releases or waivers of rights.
In practical terms, this means that a Fly To Fit franchisee's obligations under the General Release could differ significantly depending on the state in which they operate. Franchisees in North Dakota, for instance, are not required to sign a general release upon renewal, offering them greater protection of their rights. Conversely, in states without such specific protections, the standard form of General Release might be fully enforceable.
Prospective Fly To Fit franchisees should carefully review the state-specific addenda and riders included in the Franchise Disclosure Document to understand how the General Release applies in their particular state. Consulting with an attorney is crucial to fully grasp the implications of these provisions and ensure compliance with local laws. The interplay between the standard General Release and state regulations highlights the importance of thorough due diligence before entering into a franchise agreement with Fly To Fit.