Who are considered the 'Franchisor Released Parties' in the Lees Famous Recipe franchise agreement?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Franchisor and Franchisee agree as follows:
- **1.
General Release**.
Franchisee, for itself and for its heirs, executors, administrators and assigns, does hereby release and forever discharge Franchisor and all of its shareholders, directors, officers, employees, and agents, and their successors, heirs, executors, administrators and assigns, along with any affiliates or subsidiaries (collectively, the "Franchisor Released Parties") of and from any and all known or unknown claims that have been made, could have been made or might hereafter be made, against the Franchisor Released Parties, or that arise out of, are related to, or are in any manner connected to the Franchise Agreement, as well as from any and all known or unknown claims, demands, causes of action, suits and/or liabilities whatsoever, both at law and in equity, that Franchisee ever had, now have or that it or its heirs, executors, administrators or assigns hereafter can, shall or may have against the Franchisor Released Parties, or any one of them, jointly or severally, for or by reason of any matter, cause or thing whatsoever, from any time prior to the Effective Date of this Agreement, the intention of this provision being to release completely, absolutely, and finally the Franchisor Released Parties from all liabilities arising from any matter or thing arising out of, relating to or pertaining to the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 70–287)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe Franchise Disclosure Document, the 'Franchisor Released Parties' encompass a broad range of individuals and entities associated with the franchisor. Specifically, this includes Lees Famous Recipe's shareholders, directors, officers, employees, and agents. The definition also extends to their respective successors, heirs, executors, administrators, and assigns. Furthermore, any affiliates or subsidiaries of Lees Famous Recipe are included within this definition.
This definition is important because the franchise agreement contains a general release, where the franchisee releases and discharges the 'Franchisor Released Parties' from all known or unknown claims related to the Franchise Agreement. This means a franchisee gives up the right to sue any of the released parties.
Such a broad definition of 'Franchisor Released Parties' is relatively common in franchise agreements. Prospective franchisees should carefully consider the implications of this release, as it can significantly limit their legal recourse against a wide array of individuals and entities associated with Lees Famous Recipe.