Does the Beauty Bungalows franchisee's general release cover claims related to non-disclosure?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee [and Owner each] hereby releases and forever discharges Franchisor and its members, managers, officers, directors, owners, principals, managers, employees, affiliates, successors and assigns (collectively the "Released Parties"), from any and all claims, demands, obligations, liabilities, actions, causes of action, suits, proceedings, controversies, disputes, agreements, promises, allegations, costs and expenses, at law or in equity, of every nature, character or description whatsoever, whether known or unknown, suspected or unsuspected or anticipated or unanticipated, which Franchisee [or Owner] ever had, now has, or may, shall or can hereafter have or acquire (collectively referred to as "Claims"). This Release includes, but is not limited to, all Claims arising out of, concerning, pertaining to or connected with the Franchise Agreement, any other agreement, tort, statutory violation, representation, nondisclosure, act, omission to act, fact, matter or thing whatsoever, occurring as of or prior to the date of this Release, so that after the date of this Release, [neither] Franchisee [nor Owner] shall have any Claim of any kind or nature whatsoever against the Released Parties, directly or indirectly, or by reason of any matter, cause, action, transaction or thing whatsoever done, said or omitted to have been done or said at any time prior to the date of this Release.
This does not apply with respect to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder.
Source: Item 23 — RECEIPTS (FDD pages 48–177)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the general release that a franchisee signs does cover claims related to non-disclosure. The release explicitly includes "nondisclosure" as one of the types of claims being released. This means that by signing the release, the franchisee (and owner, if applicable) agrees to give up any existing or future claims against Beauty Bungalows related to nondisclosure, among other things.
The release covers a broad range of potential claims, including those arising from the Franchise Agreement itself, torts, statutory violations, representations, and any act or omission. This waiver is intended to be comprehensive, covering both known and unknown claims that the franchisee may have against Beauty Bungalows up to the date of the release. However, this release does not apply to claims arising under the Washington Franchise Investment Protection Act.
It is important for a prospective Beauty Bungalows franchisee to carefully consider the implications of signing such a broad release. By signing, they are essentially waiving their right to sue Beauty Bungalows for a wide variety of issues, including those they may not even be aware of at the time of signing. Franchisees should seek legal counsel to fully understand the scope and impact of this release before signing it.
Notably, California franchisees are subject to a specific waiver of Civil Code Section 1542, which states that a general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor. By waiving this section, California franchisees are agreeing to release claims even if they later discover facts that would have significantly impacted their decision to settle.