What is the relationship between the 'General Release' and the 'Franchisee' in the Hyper Kidz franchise agreement?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
- (d) you and your Principals or the transferring Principal(s) and the transferee (if it is then a franchisee of ours) must execute a general release in form satisfactory to us of any and all claims against us, our Affiliates and our respective shareholders, officers, directors, employees and agents; and
- BY EXECUTING THE FRANCHISE AGREEMENT, FRANCHISEE AND ANY PRINCIPAL, INDIVIDUALLY AND ON BEHALF OF FRANCHISEE'S AND SUCH PRINCIPAL'S HEIRS, LEGAL REPRESENTATIVES, SUCCESSORS AND ASSIGNS, HEREBY FOREVER RELEASE AND DISCHARGE BOOMERANG FRANCHISE, LLC, MARYLAND INDOOR PLAY, LLC, ANY OTHER AFFILIATES AND ANY PARENT COMPANY, SUBSIDIARIES, DIVISIONS, AFFILIATES, SUCCESSORS, ASSIGNS AND DESIGNEES, AND THE FOREGOING ENTITIES' DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, SHAREHOLDERS, SUCCESSORS, DESIGNEES AND REPRESENTATIVES FROM ANY AND ALL CLAIMS, DEMANDS AND JUDGMENTS RELATING TO OR ARISING UNDER THE STATEMENTS, CONDUCT, CLAIMS OR ANY OTHER AGREEMENT BETWEEN THE PARTIES EXECUTED PRIOR TO THE DATE OF THE FRANCHISE AGREEMENT, INCLUDING, BUT NOT LIMITED TO, ANY AND ALL CLAIMS, WHETHER PRESENTLY KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, ARISING UNDER THE FRANCHISE, SECURITIES, TAX OR ANTITRUST LAWS OF THE UNITED STATES OR OF ANY STATE OR TERRITORY THEREOF. THIS RELEASE SHALL NOT APPLY TO ANY CLAIMS ARISING FROM REPRESENTATIONS MADE BY FRANCHISOR IN FRANCHISOR'S FRANCHISE DISCLOSURE DOCUMENT RECEIVED BY FRANCHISEE.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, the franchisee and its principals may be required to execute a general release under certain conditions, specifically during a transfer of ownership. This release involves relinquishing any claims against Hyper Kidz, its affiliates, and their respective stakeholders.
Specifically, if the franchisee seeks to transfer their interest in the franchise agreement, a principal's interest, or a series of transfers that collectively result in a transfer of the agreement, the franchisee and their principals must execute a general release. This release must be in a form that is satisfactory to Hyper Kidz. The release covers any and all claims against Hyper Kidz, its affiliates, and their shareholders, officers, directors, employees, and agents.
Additionally, upon executing the franchise agreement, the franchisee and any principal, individually and on behalf of their heirs, legal representatives, successors, and assigns, release and discharge Boomerang Franchise, LLC, Maryland Indoor Play, LLC, any other affiliates and any parent company, subsidiaries, divisions, affiliates, successors, assigns and designees, and the foregoing entities' directors, officers, employees, agents, shareholders, successors, designees and representatives from any and all claims, demands, and judgments relating to or arising under the statements, conduct, claims or any other agreement between the parties executed prior to the date of the franchise agreement, with the exception of any claims arising from representations made by Hyper Kidz in the Franchise Disclosure Document received by the franchisee.