Does the release in the Nothing Bundt Cakes franchise agreement cover claims related to indebtedness?
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 Nothing Bundt Cakes' 2025 Franchise Disclosure Document, the release provided by the franchisee (or 'Releasor') to Nothing Bundt Cakes (or 'Franchisor') broadly covers various types of claims. This release extends not only to the Franchisor but also to its affiliates, owners, and personnel.
The scope of the release includes "any and all claims, demands, costs, expenses, causes of action, damages, suits, duties, liabilities, agreements and contracts, indebtedness, accounts of every kind or nature". This encompasses both known and unknown claims that the franchisee may have against Nothing Bundt Cakes. It specifically includes claims related to the franchise offering, the Franchise Agreement itself, and the operation of the bakery.
Furthermore, the release includes a promise from the franchisee to not pursue any legal actions against Nothing Bundt Cakes in any court or tribunal regarding any matter or claim arising before the execution of the release. This is a comprehensive release, aiming to protect Nothing Bundt Cakes from potential legal liabilities associated with the franchise relationship prior to the release date.