According to the Itan FDD, what is the definition of 'Waiver and Release of Claims'?

According to Itan's 2025 Franchise Disclosure Document, the 'General Release' is defined as Itan's then-current form of 'Waiver and Release of Claims'. This document must be signed by the franchisee and their owners in connection with a transfer, as specified in §8.2 of the agreement. This indicates that during a transfer of ownership or rights, Itan requires a formal release from the franchisee, ensuring that Itan is protected from potential future claims related to the franchise agreement.

The FDD also includes an example of a 'Waiver and Release of Claims' agreement. This agreement stipulates that the franchisee parties release Itan and its affiliates from all claims, liabilities, damages, and expenses arising from the franchise agreement's execution, performance, or the offer and sale of the franchise. This release covers both known and unknown claims, past and present, absolute or contingent, and suspected or unsuspected.

However, the release does not apply to obligations within the agreement itself. Furthermore, the FDD notes specific state laws that may impact the enforceability of such releases. For example, the release does not apply to claims arising under the Washington Franchise Investment Protection Act for Washington franchisees. Similarly, the FDD outlines specific stipulations for franchisees in Maryland, Michigan, North Dakota, and Rhode Island, regarding waivers, limitations of claims, and other provisions that may be deemed unfair or unenforceable under those states' franchise laws. These stipulations highlight the importance of franchisees understanding their rights under state law and how those rights interact with the franchise agreement's release provisions.