Does the Annex Brands General Release require me to assume the risk of mistakes of fact?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
You expressly assume the risk of any mistake of fact or fact of which you may be unaware or that the true facts may be other than any facts now known or believed to exist by you, and it is your intention to forever settle, adjust and compromise any and all present and/or future disputes with respect to all matters from the beginning of time to the date of this document finally and forever and without regard to who may or may not have been correct in their understanding of the facts, law or otherwise. All releases given by you are intended to constitute a full, complete, unconditional and immediate substitution for any and all rights, claims, demands and causes of action whatsoever which exist, or might have existed, on the date of this document. You represent and warrant that you have made such independent investigation of the facts, law and otherwise pertaining to all matters discussed, referred to or released in or by this document as you, in your independent judgment, believe necessary or appropriate. You have not relied on any statement, promise, representation or otherwise, whether of fact, law or otherwise, or lack of disclosure of any fact, law or otherwise, by the Franchisor-Related Persons/Entities or anyone else, not expressly set forth herein, in executing this Release.
Source: Item 23 — Receipts (FDD pages 110–299)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, the General Release requires franchisees to assume the risk of any mistake of fact. The document states that franchisees expressly assume the risk of any factual errors, even those they are unaware of, or situations where the true facts differ from what they currently know or believe. This means that when signing the release, a franchisee agrees to settle all past, present, and future disputes without regard to who had the correct understanding of the facts or law.
This assumption of risk is further emphasized by the requirement that franchisees conduct their own independent investigation of all relevant facts and laws. They must acknowledge that they are not relying on any statements or representations made by Annex Brands or related parties that are not explicitly stated in the release. This clause is designed to ensure that franchisees are fully responsible for their understanding of the situation and are not basing their decision to sign the release on incomplete or inaccurate information provided by Annex Brands.
The General Release is intended to be a comprehensive and unconditional substitution for any rights, claims, or causes of action that a franchisee may have against Annex Brands. By signing it, franchisees confirm that they have conducted their own due diligence and are aware of the implications of waiving their rights, including the risk of unknown mistakes of fact. This is a significant legal commitment, and prospective franchisees should carefully consider its implications and seek legal advice before signing.