Does the general release by the Beauty Bungalows franchisee include claims that are currently unknown?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Beauty Bungalows Franchising, LLC FDD Exhibit I 2. Waiver of Rights. This Release is intended by Franchisee [and Owner] to be a full and unconditional general release and to constitute a full, unconditional and final accord and satisfaction, extending to all Claims of any nature, whether or not known, expected or anticipated to exist in favor of
Source: Item 23 — RECEIPTS (FDD pages 48–177)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, the general release signed by the franchisee (and owner, if applicable) includes a release of claims, demands, obligations, or liabilities, whether known or unknown, suspected or unsuspected, or anticipated or unanticipated. This means the franchisee is giving up any right to sue Beauty Bungalows for anything that has happened up to the date of the release, even if the franchisee is not yet aware of the basis for such a claim.
The FDD states that this release extends to all claims arising out of or connected with the Franchise Agreement, any other agreement, tort, statutory violation, representation, nondisclosure, act, or omission. The release is intended to be a full and unconditional general release, constituting a final accord and satisfaction, regardless of whether any unknown claim would materially affect settlement and compromise of any matter mentioned in the agreement.
Beauty Bungalows franchisees and owners each acknowledge that claims or facts in addition to or different from those which are now known or believed to exist with respect to the matters mentioned in the agreement may later be discovered, and it is their intention to fully and forever settle and release any and all matters, regardless of the possibility of later discovered claims or facts. However, this does not apply with respect to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder.
This type of general release with a waiver of unknown claims is common in franchise agreements. Prospective Beauty Bungalows franchisees should carefully consider the implications of signing such a release, as it could prevent them from pursuing legal action against the franchisor in the future, even for issues they are not currently aware of. It is advisable to seek legal counsel before signing any agreement containing such a broad release.