Under what circumstances might Pearce Bespoke require a franchisee to sign a general release?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
[This is our current standard form of General Release. This document is not signed when you purchase a franchise. In circumstances such as a renewal of your franchise or as a condition of our approval of a sale of your franchise, we may require you to sign a general release.]
This General Release of Claims ("Release") is made as of the date signed below, by the individual or entity listed below as franchisee ("Franchisee"), and each individual holding an ownership interest in Franchisee (collectively with Franchisee, "Releasor") in favor of Pearce Bespoke Franchising, LLC ("Franchisor," and together with Releasor, the "Parties"). This General Release of Claims will not apply to claims arising under the Franchise Investment Protection Act, Chapter 19.100 RCW, or the rules adopted thereunder.
WHEREAS, Franchisor and Franchisee have entered into a Franchise Agreement ("Agreement") pursuant to which Franchisee was granted the right to own and operate a Pearce Bespoke 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/amend the Agreement] OR [the Agreement is being terminated/or indicate other reason for the requirement of this waiver and release], and Franchisor has consented to such; and
WHEREAS, as a condition to Franchisor's consent, Releasor has agreed to execute this Release upon the terms and conditions stated below.
Source: Item 23 — RECEIPTS (FDD pages 39–172)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, a franchisee may be required to sign a general release under specific circumstances. This release is not a standard document signed when initially purchasing a franchise. Instead, Pearce Bespoke may require it during a franchise renewal or as a condition for approving the sale of the franchise to another party.
The purpose of the general release is to ensure that Pearce Bespoke is protected from potential future claims by the franchisee. The document includes clauses where the franchisee acknowledges they have the opportunity to discuss the release with legal counsel and that the release is governed by the laws of the state where the franchised business is located. The release also covers successors, affiliates, and assigns, ensuring comprehensive protection for Pearce Bespoke.
The document outlines scenarios where the franchisee has notified Pearce Bespoke of their intent to transfer the franchise agreement, transfer ownership, enter into a successor franchise agreement, or amend the existing agreement. It also applies when the franchise agreement is being terminated or for other reasons necessitating the waiver and release. In these situations, the franchisee, along with anyone holding an ownership interest in the franchise, must agree to the release as a condition of Pearce Bespoke's consent to the proposed action.