Under the Hyper Kidz agreement, what entities are included in the release provided by the franchisee?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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, when franchisees sign the Franchise Agreement, they release specific entities from all claims, demands, and judgments related to agreements made before the franchise agreement date. This release extends to Boomerang Franchise, LLC, Maryland Indoor Play, LLC, their affiliates, parent companies, subsidiaries, divisions, successors, assigns, and designees. It also includes the directors, officers, employees, agents, shareholders, successors, designees, and representatives of these entities.
This release covers a broad range of potential claims, whether known or unknown, suspected or unsuspected, arising under franchise, securities, tax, or antitrust laws of the United States or any state or territory. However, the release does not apply to claims arising from representations made by Hyper Kidz in its Franchise Disclosure Document.
For a prospective Hyper Kidz franchisee, this means they are waiving their rights to sue the released parties regarding any prior agreements or conduct, except for misrepresentations in the FDD itself. Franchisees should carefully review all prior dealings and the FDD before signing the Franchise Agreement to ensure they understand what rights they are giving up. It is advisable to seek legal counsel to fully understand the implications of this release.