Is a Management Recruiters franchisee required to execute general releases to obtain a Successive Agreement?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
tute Franchisee's election not to enter into a Successive Agreement. In the event any Law applicable to such Successive Agreement shall require additional notice, this Agreement shall be deemed amended to conform to
the minimum requirement of such Law and, until such additional notice has been given, this Agreement shall remain in effect on a month-to-month basis.
- 3.4. Successive Terms Franchisor's Responsibilities. Upon receipt of Franchisee's notice if its desire to enter into a Successive Agreement, Franchisor shall determine whether Franchisee has fully complied with and is in full compliance with this Agreement to Franchisor's sole satisfaction. If so, Franchisor shall then deliver to Franchisee (i) a form of Successive Agreement; (ii) general release forms; and (iii) any ancillary agreements and documents then customarily used by Franchisor in the grant of franchises of the type described in this Agreement (collectively, the "Successive Term Agreements"). Each of these agreements shall be modified, as necessary, to conform to Section 3.2 hereof.
- **3.5.
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to the 2024 Management Recruiters Franchise Disclosure Document, whether a franchisee is required to execute general releases to obtain a Successive Agreement depends on the location of the franchise. Generally, Management Recruiters requires franchisees to execute general release forms as part of the Successive Term Agreements.
However, an addendum to the franchise agreement for franchisees in New York states that while a general release is required for renewal, termination, and transfer, this release will exclude claims arising under the General Business Law of the State of New York.
Additionally, the FDD states that the provisions of the agreement relating to the execution of releases shall be subject to the then valid and applicable requirements of Indiana Code, Sec. 23‐2‐2.7‐1(5), which prohibits franchise agreements from requiring a member to prospectively assent to a release that relieves any person from liability imposed by that chapter. Therefore, Management Recruiters franchisees in Indiana are not required to sign a release.