Who is included in the definition of 'Franchisee Parties' when releasing claims against Itan?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Release. Owner, you, and each of your officers, directors, shareholders, members, owners, employees, agents, representatives, affiliates, parents, divisions, successors and assigns, and all persons or firms claiming by, through, under, or on behalf of any or all of them (the "Franchisee Parties"), hereby release, acquit and forever discharge us, any and all of our past and present affiliates, parents, subsidiaries and related companies, divisions and partnerships, consultants, advisors and franchise sellers and its and their respective past and present officers, directors, shareholders, members, owners, employees, agents, representatives, affiliates, parents, divisions, successors and assigns, and the spouses of such individuals (collectively, the "Franchisor Parties"), from any and all claims, liabilities, damages, expenses, actions or causes of action which any of the Franchisee Parties may now have or has ever had, whether known or unknown, past or present, absolute or contingent, suspected or unsuspected, of any nature whatsoever, directly or indirectly arising out of or relating to the execution and performance (or lack thereof) of the Franchise Agreement or the offer, sale or acceptance of the franchise related thereto (including, but not limited to any disclosures and representations made in connection therewith). The foregoing release shall not be construed to apply with respect to any obligations contained within this Agreement.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the term 'Franchisee Parties' encompasses a broad range of individuals and entities associated with the franchisee. This definition is crucial in understanding the scope of the release of claims against Itan.
Specifically, 'Franchisee Parties' includes the owner, the franchisee ('you'), and each of their officers, directors, shareholders, members, owners, employees, agents, representatives, affiliates, parents, divisions, successors, and assigns. It also extends to all persons or firms claiming by, through, under, or on behalf of any or all of them. This comprehensive list ensures that all parties related to the franchisee's business are bound by the release, preventing potential future claims from various sources connected to the franchisee.
This definition has significant implications for prospective Itan franchisees. It means that when signing a release, not only are the franchisee and their immediate business partners relinquishing their rights to make claims against Itan, but so are a wide array of affiliated individuals and entities. Franchisees should carefully consider this extensive scope and seek legal counsel to fully understand the ramifications before signing any release. This is a common practice in franchising to protect the franchisor from future litigation arising from the franchise agreement.