Does the release in the Bb.Q Chicken franchise agreement apply to claims that are presently unknown?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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 franchise agreement includes a general release that extends to claims which the franchisee or their principals may not know or suspect to exist at the time of signing the agreement. This means that by signing the agreement, franchisees are waiving their rights to pursue claims against Bb.Q Chicken, even if those claims are based on facts that are currently unknown to them.
This waiver is further reinforced by a covenant where the franchisee and their principals agree not to bring any legal action or make any demands against Bb.Q Chicken concerning any franchisee-released claim. They also agree to defend and indemnify Bb.Q Chicken against any such claims. This comprehensive release is designed to protect Bb.Q Chicken from potential future liabilities, even those that are currently unforeseen.
However, there is an exception to this general release. The FDD states that the general release does not apply to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, or its associated rules, offering some protection to franchisees in Washington regarding specific statutory rights. Prospective franchisees should be aware of the broad scope of the general release and consult with legal counsel to fully understand its implications, especially concerning potential future claims that may arise.