According to the release agreement, who is the Releasor in relation to Ledgers?

According to Ledgers' 2025 Franchise Disclosure Document, the Releasor in the release agreement is the party making the release. In this case, the Releasor and Loyalty Business Services LLC doing business as Ledgers are parties to one or more Franchise Agreements. The Releasor is providing the release with reference to certain facts, such as the execution of a successor Franchise Agreement, consent to the transfer of rights and duties under the Franchise Agreement, or other renewal documents.

In essence, the Releasor is the franchisee or someone associated with the franchisee who is giving up certain rights or claims against Ledgers. This often occurs during franchise renewal, transfer, or when Ledgers assumes rights and duties under the agreement. The agreement specifies that the franchisee releases Ledgers from any claims or actions they might have against them up to the date of the release.

It's important for a prospective Ledgers franchisee to understand the implications of signing a release. They should carefully review the terms and conditions, especially concerning any rights they may be waiving. Additionally, the FDD mentions specific waivers related to California Civil Code §1542, which deals with unknown claims, and advises consulting legal counsel to understand the applicability of state and federal laws to venue restrictions in the franchise agreement.

While the release generally covers most claims, it does not apply to liabilities arising under specific state franchise laws, such as the California Franchise Investment Law, Maryland Franchise Registration and Disclosure Law, and similar laws in other states. This ensures that franchisees retain certain statutory rights and protections despite signing the release. Prospective franchisees should be aware of these exceptions and consult with legal counsel to fully understand their rights and obligations.