Does the Bb.Q Chicken General Release cover claims that are currently unknown?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's Principal(s) knowingly waive (1) any claim that this General Release was induced by any misrepresentation or nondisclosure, and (2) any right to rescind or avoid this General Release based upon presently existing facts, known or unknown.
FRANCHISEE AND FRANCHISEE'S PRINCIPAL(S) ON BEHALF OF THEMSELVES AND THE FRANCHISEE RELEASORS WAIVE ANY RIGHTS AND BENEFITS CONFERRED BY ANY APPLICABLE PROVISION OF LAW EXISTING UNDER ANY FEDERAL, STATE OR POLITICAL SUBDIVISION THEREOF WHICH WOULD INVALIDATE ALL OR ANY PORTION OF THE RELEASE CONTAINED HEREIN BECAUSE SUCH RELEASE MAY EXTEND TO CLAIMS WHICH THE FRANCHISEE RELEASORS DO NOT KNOW OR SUSPECT TO EXIST IN THEIR FAVOR AT THE TIME OF EXECUTION OF THIS AGREEMENT. Franchisee and Franchisee's Principal(s) also covenant not to bring any suit, action, or proceeding, or make any demand or claim of any type, against any Released Franchisor Party with respect to any Franchisee Released Claim, and Franchisee and Franchisee's Principal(s) shall defend, indemnify, and hold harmless each of Franchisor Releasees against same.
Washington Franchise Law.: The General Release does not apply with respect to claims arising under the
Washington Franchise Investment Protection Act, RCW 19.100, or the rules adopted thereunder.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to the 2025 Bb.Q Chicken Franchise Disclosure Document, the General Release executed by the franchisee and their principals includes a waiver of rights and benefits concerning claims that are currently unknown. Specifically, the franchisee and their principals waive any rights that would invalidate the release because it extends to claims they do not know or suspect to exist at the time of the agreement's execution. This means that by signing the General Release, franchisees are potentially giving up their right to pursue claims against Bb.Q Chicken, even if they are unaware of the basis for those claims when they sign the agreement.
This aspect of the General Release has significant implications for prospective franchisees. It places the onus on the franchisee to conduct thorough due diligence before signing the agreement. This includes carefully reviewing all aspects of the franchise offering, seeking legal counsel, and fully understanding the potential risks and liabilities associated with operating a Bb.Q Chicken franchise. Failure to do so could result in the franchisee being unable to pursue legitimate claims against the franchisor due to the waiver of unknown claims.
However, the FDD also notes an important exception: the General Release does not apply to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, or its associated rules. This means that franchisees in Washington State retain their rights to pursue claims under this specific law, regardless of the General Release. Furthermore, the acknowledgement form containing this release is not for use in California, Maryland, and Washington.
It is common practice for franchise agreements to include general releases. Franchisees should carefully consider the implications of such releases and seek legal advice to fully understand their rights and obligations. Franchisees should also be aware of any state-specific laws that may affect the enforceability of these releases.