Does the general release by the Beauty Bungalows franchisee extend to the owner of the franchise?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS ACKNOWLEDGED, FRANCHISEE [AND OWNER EACH] AGREES AS FOLLOWS:
- General Release. 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 provided by the franchisee extends to the owner of the franchise. The document specifies that both the franchisee and the owner each release and forever discharge Beauty Bungalows Franchising, LLC (referred to as "Franchisor") and its associated parties from all claims, demands, and liabilities. This release covers all disputes and causes of action, whether known or unknown, that the franchisee or owner ever had, currently has, or may have in the future against the franchisor.
This means that by signing the general release, both the franchisee and the owner are waiving their rights to bring any claims against Beauty Bungalows, except for those arising under the Washington Franchise Investment Protection Act. This waiver is intended to be a full and unconditional general release, constituting a final agreement that extends to all claims, regardless of whether they are known, expected, or anticipated.
Beauty Bungalows includes an alternate provision specifically for California franchisees, reinforcing that the release is intended to be comprehensive and covers all claims, known or unknown, that the franchisee and owner may have against the released parties. Both the franchisee and the owner expressly waive any rights or benefits they may be entitled to under Section 1542 of the California Civil Code, ensuring that the release is as broad as possible.
It is important for a prospective Beauty Bungalows franchisee and their owner to carefully review the terms of the general release with legal counsel to fully understand the implications of waiving potential claims against the franchisor. This ensures they are aware of the rights they are giving up and can make an informed decision about entering into the franchise agreement.