Does the release in the Nothing Bundt Cakes franchise agreement cover claims related to damages?
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 Franchise Disclosure Document, the release provided by the franchisee (referred to as the 'Releasor') broadly covers claims, demands, costs, expenses, causes of action, damages, suits, duties, liabilities, agreements and contracts, indebtedness, and accounts of every kind or nature. This includes both known and unknown claims that the franchisee may have against Nothing Bundt Cakes.
The release extends to any transactions or events that occurred before the date the release is executed. Specifically, it includes claims related 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 encompasses claims arising from the relationship between the franchisee and Nothing Bundt Cakes from the beginning of time to the execution date of the release.
Furthermore, the franchisee agrees not to initiate or participate in any legal actions against Nothing Bundt Cakes in any court or jurisdiction regarding any matter or claim that arose before the release was signed. This means that once the release is executed, the franchisee gives up the right to sue Nothing Bundt Cakes for any past issues related to the franchise agreement or the operation of the bakery. This type of comprehensive release is common in franchise agreements to protect the franchisor from future litigation based on past events.
This clause has significant implications for prospective franchisees. Before signing the release, a franchisee should carefully consider whether they have any existing or potential claims against Nothing Bundt Cakes. It is advisable to seek legal counsel to fully understand the scope and impact of the release, as signing it will prevent them from pursuing legal action for any covered issues in the future.