What is the 'Agreement' referenced in the My Salon Suite Waiver and Release of Claims?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisor and Franchisee have entered into a Franchise Agreement (the "Agreement") pursuant to which Franchisee was granted the right to own and operate a My Salon Suite business (the "Franchised Business");
WHEREAS, Franchisee has notified Franchisor of its desire to transfer the Agreement and all rights related thereto, or an ownership interest in Franchisee, to a transferee (enter into a successor franchise agreement), and Franchisor has consented to such transfer (agreed to enter into a successor franchise agreement); and
WHEREAS, as a condition to Franchisor's consent to the transfer (Franchisee's ability to enter into a successor franchise agreement), Releasor has agreed to execute this Release upon the terms and conditions stated below.
NOW, THEREFORE, in consideration of Franchisor's consent to the transfer (Franchisor entering into a successor franchise agreement), and for other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, and intending to be legally bound, Releasor hereby agrees as follows:
Source: Item 6 — Other Intangibles and Goodwill (FDD pages 274–314)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the 'Agreement' referenced in the Waiver and Release of Claims is the Franchise Agreement between the franchisor and franchisee. This agreement grants the franchisee the right to own and operate a My Salon Suite business.
The Waiver and Release of Claims is executed when a franchisee desires to transfer their franchise to a new owner. As a condition of the franchisor's consent to this transfer, the franchisee (referred to as the Releasor) must agree to release the franchisor from any and all claims related to the original Franchise Agreement. This ensures that the franchisor is protected from potential future liabilities arising from the previous franchisee's operation of the business.
This requirement means that if a My Salon Suite franchisee decides to sell their business, they must sign a release that absolves the franchisor of any past, present, or future claims. Prospective franchisees should understand this condition, as it limits their ability to pursue legal action against the franchisor once they transfer ownership. It is advisable to consult with legal counsel to fully understand the implications of signing such a release before transferring a franchise.