Does the Fly To Fit General Release require specific monetary consideration to be valid?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
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)
According to the 2024 Fly To Fit FDD, the standard General Release form does not specify any monetary consideration required for it to be valid. The General Release is a standard form that Fly To Fit may require a franchisee to sign under specific circumstances, such as a franchise renewal or as a condition for approving the sale of the franchise.
The General Release requires the franchisee (Releasor) to release Fly To Fit Franchise, its affiliates, and their respective personnel from all claims and liabilities arising from events up to the date of the release, including those related to the Franchise Agreement. The franchisee also agrees not to initiate or participate in any legal proceedings against Fly To Fit Franchise.
However, the FDD includes riders for New York and North Dakota that modify the requirements for releases. The New York Rider states that franchisees are not required to assent to a release that would relieve Fly To Fit Franchise from any duty or liability imposed by New York General Business Law. The North Dakota Rider specifies that franchisees are not required to sign a general release upon renewal of the agreement. These riders indicate that the enforceability and requirements of the General Release can vary based on state laws.