What does the Fly To Fit General Release prevent the Releasor from doing?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
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)
According to Fly To Fit's 2024 Franchise Disclosure Document, the General Release and Covenant Not to Sue prevent the Releasor from initiating or participating in any legal actions against Fly To Fit Franchise. Specifically, the Releasor agrees to release Fly To Fit Franchise from all claims and promises not to initiate, prosecute, encourage, assist, or participate in any civil, criminal, or administrative proceeding or investigation against Fly To Fit Franchise. This includes any claims arising out of the Franchise Agreement.
In practical terms, this means that if a franchisee signs the General Release, they give up their right to sue Fly To Fit Franchise for any reason covered by the release. This could include disputes over the terms of the franchise agreement, alleged misrepresentations, or any other grievances the franchisee might have. The "Covenant Not to Sue" reinforces this by explicitly prohibiting the franchisee from taking any legal action against Fly To Fit Franchise, even as a participant in a lawsuit initiated by someone else.
It is important to note that Fly To Fit's FDD states that this General Release is not signed when purchasing a franchise, but may be required in circumstances such as a renewal of your franchise or as a condition of approval of a sale of your franchise. Franchisees should carefully consider the implications of signing such a release, as it could significantly limit their legal options in the future. It is advisable to seek legal counsel before signing any document that releases Fly To Fit from liability or restricts the franchisee's right to sue.