What were the non-monetary terms of the settlement agreement between Management Recruiters International, Inc. and Peter Rouillard?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
ity and liquidated damages.
On September 1, 2019, the parties entered into a written settlement agreement whereby Rouillard agreed to make payment to MRI a sum equal to $75,000, execute a new Franchise Agreement for a term of three years, and make supplemental royalty payments to cover costs of being in an exclusive territory of another member. The parties agreed not to disparage one another, to mutually release one another from all claims known and unknown, and to keep the settlement terms confidential, except as
Source: Item 3 — LITIGATION (FDD pages 12–14)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the settlement agreement between Management Recruiters International, Inc. and Peter Rouillard, reached on September 1, 2019, included several non-monetary terms. Rouillard was required to execute a new Franchise Agreement for a term of three years. Additionally, he had to make supplemental royalty payments to cover the costs of operating within another member's exclusive territory.
Both parties agreed not to disparage one another, ensuring that neither party would make negative statements about the other. They also agreed to mutually release one another from all known and unknown claims, which means that both Management Recruiters and Rouillard waived their rights to pursue any further legal action against each other related to the issues in the lawsuit.
Finally, the settlement terms were to remain confidential, except as required by applicable law. This confidentiality clause is a common provision in settlement agreements, intended to prevent the details of the settlement from becoming public knowledge. This protects both parties from potential negative publicity or the use of the settlement as a precedent in other similar cases.