factual

What is the scope of claims that the franchisee releases in the Bb.Q Chicken General Release?

Bb_Q_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

71-9051 | Clerk of State Corporation Commission 1300 East Main Street, 1st Floor Richmond, VA 23219 (804) 371-9733 | | WASHINGTON | Department of Financial Institutions Mailing: PO Box 41200 Olympia, WA 98502-1200 Overnight: 150 Israel Rd SW Tumwater, WA 98501-6456 (360) 902-8760 | Washington Dept of Financial Institutions 150 Israel Rd SW Tumwater, WA 98501-6456 | | WISCONSIN | Wisconsin Securities Commissioner Securities and Franchise Registration 345 W. Washington Avenue Madison, WI 53703 (608) 266-8559 | Department of Financial Institutions Securities Division P.O. Box 41200 Olympia, WA 98504-1200 (360) 902-8760 |

Exhibit H to the BBDOTQ USA, Inc. Franchise Disclosure Document

GENERAL RELEASE

("Franchisee") and its principal(s):
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  • Franchisee and Franchisee's Principal(s) do, for themselves and their successors and assigns, (a) hereby release and forever discharge generally Franchisor and any affiliate, wholly owned or controlled limited liability company, subsidiary, successor or assign thereof and any shareholder, officer, director, employee, agent, executor, administrator, estate, trustee or heir of any of them (the "Released Franchisor Party"), from any and all claims, demands, damages, injuries, agreements and contracts, indebtedness, accounts of every kind or nature, whether presently known or unknown, suspected or unsuspected, disclosed or undisclosed, actual or potential, which Franchisee or Franchisee's Principal(s) may now have, or may hereafter claim to have or to have acquired of whatever source or origin, arising out of or related to any and all transactions of any kind or character at any time prior to and including the date hereof, including generally any and all claims at law or in equity, those arising under the common law or state or federal statutes, rules or regulations such as, by way of example only, franchising, securities and antitrust statutes, rules or regulations, in any way arising out of or connected with the Franchise Agreement or this General Release, and further promises never from this day forward, directly or indirectly, to institute, prosecute, commence, join in, or generally attempt to assert or maintain any action thereon against any Released Franchisor Party, in any court or tribunal of the United States of America, any state thereof, or any other jurisdiction for any matter or claim arising before execution of this General Release. In the event Franchisee or Franchisee's Principal(s) breaches any of the promises, covenants, or undertakings made herein by any act or omission, Franchisee and Franchisee's Principal(s) shall pay, by way of indemnification, all costs and expenses of any Released Franchisor Party caused by the act or omission, including reasonable attorneys' fees and costs.
  • (b) Franchisee and Franchisee's Principal(s) represent and warrant that no portion of any claim, right, demand, obligation, debt, guarantee, or cause of action released hereby has been assigned or transferred by Franchisee or Franchisee's Principal(s) to any other party, firm or entity in any manner including, but not limited to, assignment or transfer by subrogation or by operation of law. In the event that any claim, demand, or suit shall be made or institute against any Released Franchisor Party because of any such purported assignment, transfer or subrogation, Franchisee and Franchisee's Principal(s) agree to indemnify and hold such Released Franchisor Party free and harmless from and against any such claim, demand, or suit, including reasonable costs and attorneys' fees incurred in connection therewith. It is further agreed that this indemnification and hold harmless agreement shall not require payment to such claimant as a condition precedent to recovery under this paragraph.
  • (c) THIS RELEASE IS A GENERAL RELEASE AND THE PARTIES INTEND AND AGREE THAT IT SHALL BE INTERPRETED, CONSTRUED AND ENFORCED AS SUCH.
  • (d) Franchisee and Franchisee's Principal(s) acknowledge, warrant, and represent that no promises, representations, or inducements, except as set forth in this General Release, have been offered or made by any Franchisor Released Party to secure the execution of this General Release, and that this General Release is executed without reliance on any statements or any representations not contained herein. Franchisee and

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.

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 requires franchisees and their principals to release the franchisor from a wide array of potential claims. This release covers all claims, demands, damages, injuries, agreements, contracts, indebtedness, and accounts, regardless of whether they are known or unknown, suspected or unsuspected, disclosed or undisclosed, actual or potential. The claims include those arising from any transactions before the date of the General Release.

This extensive release encompasses claims at law or in equity, including those arising under common law or state and federal statutes, rules, or regulations, such as franchising, securities, and antitrust laws. It specifically relates to anything connected with the Franchise Agreement or the General Release itself. Franchisees and their principals also agree not to institute or participate in any legal actions against the franchisor or related parties in any court or jurisdiction concerning matters arising before the execution of the General Release.

Furthermore, the franchisee and their principals represent and warrant that they have not assigned or transferred any released claims to any third party. They also acknowledge that no promises or representations, other than those in the General Release, have influenced their decision to sign it. They knowingly waive any claim that the General Release was induced by misrepresentation or nondisclosure and waive any right to rescind or avoid the release based on existing facts, whether known or unknown. However, the General Release does not apply to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, or its rules.

In practical terms, this means that a Bb.Q Chicken franchisee gives up the right to sue the franchisor for almost any reason related to the franchise agreement or their relationship before signing the release, with the exception of specific claims under Washington franchise law. This is a significant commitment that franchisees should carefully consider with legal counsel, as it can severely limit their legal recourse against Bb.Q Chicken.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.