What is the purpose of the Release form in the Ledgers Franchise Agreement?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
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10.7. Acknowledgements
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
10.8. Release of Prior Claims
By executing this Agreement, the Franchisee, on behalf of yourselves and your heirs, legal representatives, successors and assigns, and each assignee of this Agreement, forever releases and discharges us, our past and present employees, agents, members, officers, and directors, including any of our parent, subsidiary and affiliated entities, their respective past and present employees, agents, members, officers, and directors, from any and all Claims arising prior to the date of this Agreement. However, this release does not apply to any Claim you may have arising from representations in our Franchise Disclosure Document.
10.9. Counterparts
This Agreement may be executed by the parties in this Agreement in separate counterparts, each of which when so executed and delivered will be an original, but all such counterparts will together constitute but one and the same instrument. The Agreement may be signed and delivered electronically via email, facsimile or other means, which will each have the same legal effect as if signed in hardcopy with traditional ink.
[Signature Page Follows]
Intending to be bound all the provisions expressed in this Agreement, on ("Effective Date") the authorized representatives of each Party affix his or her signature below to signify acceptance. Franchisee Entity: Ledgers Franchisee Entity Address Signator Signator Address
Schedule 1-Territory
Your Territory will be defined here.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, the Release form serves multiple purposes within the franchise agreement. One function, as stated in section 10.8, is that by signing the agreement, the franchisee releases Ledgers from any claims that occurred before the agreement's date. However, this release does not apply to claims arising from representations made in the Franchise Disclosure Document itself. This protects the franchisee from unknowingly waiving rights based on information provided by Ledgers in the FDD.
Additionally, a release form is required if a franchisee wants to transfer their interest in the Franchise Agreement or their ownership in the Franchise Business. To do so, the franchisee must sign the then-current transfer and release form. This ensures that Ledgers is protected from potential liabilities or claims that may arise from the transfer of ownership.
Furthermore, the Release form is utilized when transferring to a Controlled Entity, which is an entity where the franchisee owns 100% of the voting ownership interest. In this case, each person of the Controlled Entity must sign the then-current amendment and release forms or Franchisee Agreement as required by Ledgers. This ensures that all parties involved in the Controlled Entity are bound by the terms of the franchise agreement and that Ledgers is protected from any potential liabilities.
In summary, the Release form in the Ledgers Franchise Agreement serves to protect Ledgers from potential claims and liabilities in various situations, including the initial agreement, transfer of ownership, and transfers to Controlled Entities, while also safeguarding the franchisee's rights regarding representations made in the Franchise Disclosure Document.