Who are considered 'Releasing Parties' when The Standardx requests a release and covenant not to sue?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Consistent with the previous introduction, you, on your own behalf and on behalf of your affiliates, and your and their respective owners, officers, directors, partners, managers, employees, representatives and agents, and all of your and their respective successors, heirs, executors, administrators, personal representatives and assigns (collectively, the "Releasing Parties"), hereby forever release and discharge us and our current and former affiliates, and our and their respective owners, officers, directors, partners, managers, employees, representatives and agents, and all of our and their respective successors, heirs, executors, administrators, personal representatives and assigns (collectively, the "Hyatt Parties"), from any and all claims, damages (known and unknown), demands, causes of action, suits, duties, liabilities, and agreements of any nature and kind (collectively, "Claims") that you or any of the other Releasing Parties now has, ever had, or, but for this document, hereafter would or could have against any of the Hyatt Parties (1) arising out of or related to the Releasing Parties' rights or the Hyatt Parties' obligations under the Franchise Agreement or any related agreement, or (2) otherwise arising from or related to your or any of the other Releasing Parties' relationship, from the beginning of time to the date of your signature below, with any of the Hyatt Parties. You, on your own behalf and on behalf of the other Releasing Parties, further covenant not to sue any of the Hyatt Parties on any of the Claims released by this paragraph and represent that you have not assigned any of the Claims released by this paragraph to any individual or entity who is not bound by this paragraph.
Source: Item 18 — OTHER INCOME (LOSS), NET (FDD pages 187–399)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the Releasing Parties include the franchisee, their affiliates, and their respective owners, officers, directors, partners, managers, employees, representatives, and agents. It also encompasses all of their respective successors, heirs, executors, administrators, personal representatives, and assigns.
This definition is important because it clarifies who is giving up their rights to make claims against The Standardx when a release and covenant not to sue is requested. This release covers all claims, damages (known and unknown), demands, causes of action, suits, duties, liabilities, and agreements of any nature. The release extends from the beginning of time to the date of signature, covering matters related to the Franchise Agreement or the relationship between the franchisee and The Standardx.
For a prospective franchisee, this means that not only are they themselves releasing claims, but so are all the individuals and entities associated with their franchise operation as defined above. This is a broad release, and franchisees should fully understand its implications before signing. It is advisable to seek legal counsel to review the release and covenant not to sue to ensure a complete understanding of the rights being waived.