Is the release provided by the Franchisee and Owner in the Beauty Bungalows agreement intended to be a general release?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
that execution of this Release is a condition of Franchisee's rights under the Franchise Agreement [to renew the Franchise Agreement] [to transfer the Franchise Agreement] and that Franchisee's [or Owner's] failure or refusal to execute this Release would result in Franchisee's breach of the Franchise Agreement. In consideration of the rights granted by the Franchise Agreement, Franchisee [and Owner each] executes this Release for the benefit of Franchisor.
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.
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
Franchisee [or Owner] against the Released Parties regardless of whether any unknown, unsuspected or unanticipated Claim would materially affect settlement and compromise of any matter mentioned herein. Franchisee [and Owner each], for itself, himself or herself, hereby expressly, voluntarily and knowingly waives, relinquishes and abandons each and every right, protection and benefit to which Franchisee [or Owner, as the case may be] would be entitled, now or at any time hereafter under the statutory or common law of the state where the Franchised Business is located, whether now or hereinafter existing under the laws of the state where the Franchised Business is located, or any other applicable federal and state law with jurisdiction over the parties relationship.
Source: Item 23 — RECEIPTS (FDD pages 48–177)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the release provided by the Franchisee and Owner is intended to be a general release. The document states that the Franchisee and Owner release Beauty Bungalows from all claims and liabilities, whether known or unknown, that have occurred up to the date of the release. This includes claims related to the Franchise Agreement, torts, statutory violations, or any other matter.
The release is designed to be a full and unconditional general release, acting as a final accord and satisfaction for all claims, regardless of whether they are known, expected, or anticipated. However, this general release does not extend to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and its associated rules.
Furthermore, the Beauty Bungalows FDD emphasizes that the Franchisee and Owner acknowledge the possibility of discovering new claims or facts later on. Despite this, they intend to fully settle and release all matters, regardless of any later discoveries. This waiver of Section 1542 is considered an essential term of the release, reinforcing its comprehensive nature. The document also clarifies that the release does not constitute an admission of liability by Beauty Bungalows or the validity of any claims against them.