What release must be executed by the transferring Nothing Bundt Cakes franchisee, its principals, and the transferee?
Nothing_Bundt_Cakes Franchise · 2025 FDDAnswer from 2025 FDD Document
1. Release by Releasor:
Releasor does for itself, its successors, assigns, personal representatives, agents, owners, managers, members, officers, employees, principals and affiliated entities (Releasor Parties"), hereby forever release and discharge Franchisor and any past or present, direct or indirect affiliate, wholly owned or controlled corporation, subsidiary, successor or assign thereof and any past or present shareholder, member, manager, officer, director, employee, or agent of any of them ("collectively, the "NBC Parties") from any and all claims, demands, costs, expenses, causes of action, damages, suits, duties, liabilities, agreements and contracts, indebtedness, accounts of every kind or nature, whether presently known or unknown, suspected or unsuspected, disclosed or undisclosed, actual or potential (all such matters, collectively, "Claims"), which Releasor and any other Releasor Parties may now have, or may hereafter claim to have or to have acquired against them of whatever source or origin, arising out of or related to any and all transactions of any kind or character at any time prior to and including the date hereof, including generally any and all claims at law or in equity, those arising under the common law or state or federal statutes, rules or regulations such as, by way of example only, franchising, securities and anti-trust statutes, rules or regulations, in any way arising out of or connected with (i) the offer and sale of the Nothing Bundt Cakes franchise, (ii) the Franchise Agreement ,and any renewals thereof, and (iii) the operation of the Bakery up to the date of this release or (iv) otherwise arising out of or related in any way to Releasor's or the Releasor's Parties' relationship, from the beginning of time to the date of the execution of this Release.
Further, Releasor and Releasor Parties promise never from this day forward, directly or indirectly, to institute, prosecute, commence, join in, or generally attempt to assert or maintain any action thereon against any of the NBC Parties, in any court or tribunal of the United States of America, any state thereof, or any other jurisdiction for any matter or claim arising before execution of this Release.
Source: Item 23 — RECEIPTS (FDD pages 93–309)
What This Means (2025 FDD)
According to the 2025 Nothing Bundt Cakes FDD, a transferring franchisee, along with its successors, assigns, personal representatives, agents, owners, managers, members, officers, employees, principals, and affiliated entities, must execute a release in favor of Nothing Bundt Cakes. This release covers all claims, demands, costs, expenses, causes of action, damages, suits, duties, liabilities, agreements, contracts, indebtedness, and accounts of every kind or nature, whether known or unknown, suspected or unsuspected, disclosed or undisclosed, actual or potential.
The release specifically includes any claims arising from transactions prior to the date of the release, encompassing claims at law or in equity, under common law, or state and federal statutes, rules, or regulations, such as those related to franchising, securities, and anti-trust. It pertains to the offer and sale of the Nothing Bundt Cakes franchise, the Franchise Agreement and any renewals, and the operation of the bakery up to the date of the release. It also covers any claims related to the relationship between the releasor and Nothing Bundt Cakes from the beginning of time to the execution date of the release.
Furthermore, the transferring franchisee and related parties agree never to institute, prosecute, commence, join in, or attempt to assert any action against Nothing Bundt Cakes in any court or tribunal in the United States or any other jurisdiction for any matter or claim arising before the execution of the release. This comprehensive release ensures that Nothing Bundt Cakes is protected from potential legal actions by the transferring franchisee related to the franchise agreement and its operation.