Does the All Team General Release apply to unknown claims?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, Releasor hereby agrees, covenants and promises as follows:
Releasor, on behalf of itself and each of the persons and entities described in Section 2 hereof, hereby absolutely and forever releases, remises and discharges Franchisor and each of the persons and entities described in Section 3 hereof, from any and all claims, demands, damages, liabilities, costs (including, but not limited to reasonable attorneys' fees, accounting fees or experts' fees, and the costs of litigation, arbitration or other proceedings), expenses, liens, losses, charges, audits, investigations, injunctions, orders, rulings, subpoenas, controversies, obligations, debts, loans, interest, dues, accounts, awards, reckonings, bonds, bills, covenants, promises, undertakings, variances, trespasses, judgments, executions, sums of money owed, arbitrations, suits, decisions, proceedings, verdicts entered, issued, made or rendered and causes of action of every kind and nature whatsoever, whether now known or unknown, suspected or unsuspected, which Releasor now has, owns or holds, or at any time heretofore ever had, owned or held, or could, shall or may hereafter have, own or hold, pertaining to, arising out of or in connection with the Franchise Agreement, any related agreements or the franchisor-franchisee relationship between Releasor and Franchisor.
Notwithstanding the foregoing, if this General Release is entered into in conjunction with the renewal, assignment or transfer of the Franchise Agreement, the foregoing release shall not apply to any liability under any state franchise law which governs this Release.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the General Release does apply to unknown claims. As stated in Item 22, the release covers claims and causes of action of every kind and nature whatsoever, whether now known or unknown, suspected or unsuspected. This release extends to any matters pertaining to, arising out of, or in connection with the Franchise Agreement or the franchisor-franchisee relationship between the franchisee and All Team.
This means that by signing the General Release, a franchisee is waiving their rights to pursue any claims against All Team, even if they are not aware of those claims at the time of signing. This could include potential future claims that arise from circumstances that are not yet known.
However, there is an exception. If the General Release is signed in conjunction with the renewal, assignment, or transfer of the Franchise Agreement, the release does not apply to any liability under any state franchise law which governs the Release. This exception provides some protection to franchisees in those specific situations. Franchisees should seek legal counsel to fully understand the implications of this General Release before signing.