Under what circumstances does the release in the Hyper Kidz agreement NOT apply?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.5.6 You execute a general release, in a form satisfactory to us, of any and all claims against us, our officers, directors, employees and principal stockholders of any and all claims and causes of action that you may have against us or any subsidiary or affiliated corporations in any way relating to this Agreement or the performance or non-performance thereof by us specifically excluding those representations made by Franchisor in the Franchise Disclosure Document given to the transferee.
Source: Item 23 — RECEIPTS (FDD pages 52–205)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, a franchisee transferring their rights must execute a general release of claims against Hyper Kidz. However, this release does not apply to representations made by Hyper Kidz in the Franchise Disclosure Document given to the transferee. This means the transferee can still hold Hyper Kidz accountable for statements made within the FDD itself.
In practical terms, this protects the new franchisee (transferee) from being bound by a release that would prevent them from acting on misrepresentations made within the FDD. The FDD is a crucial document for evaluating the franchise opportunity, and this clause ensures that Hyper Kidz can be held responsible for the accuracy of the information it contains.
This is a standard practice in franchising, as it ensures that the franchisor is accountable for the information provided in the FDD, which is the primary disclosure document relied upon by potential franchisees. It is important for a prospective Hyper Kidz franchisee to carefully review the FDD and understand their rights and obligations before signing any agreements.