Who is released from actions, causes of action, suits, debts, liens, obligations, promises, liabilities, claims, rights, demands, damages, controversies, losses, costs, and expenses by Belocal's Franchisor?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- Release of Claims. Franchisee and its Principals, for themselves and on behalf of their respective guarantors, predecessors, parents, subsidiaries, affiliates, shareholders, members, partners, officers, directors, managers, employees, agents, representatives, attorneys, accountants, heirs, executors, administrators, family members, successors, and assigns, and all other persons acting on their behalf or claiming under them (collectively referred to as the "Franchisee Related Parties") irrevocably and unconditionally release and forever discharge Franchisor, Franchisor's predecessors, parents, subsidiaries, and affiliates, and their respective officers, directors, shareholders, partners, managers, members, agents, representatives, independent contractors, servants, employees, attorneys, accountants, guarantors, successors, and assigns, past and present, in their corporate and individual capacities, and all persons acting by, through, under or in concert with any of them (collectively "Releasees"), from all actions, causes of action, suits, debts, liens, contracts, agreements, obligations, promises, liabilities, claims, rights, demands, damages, controversies, losses, costs, and expenses (including attorneys' fees and costs actually incurred) of any nature whatsoever, known or unknown, suspected or unsuspected, fixed or contingent ("Claim" or "Claims"), which they now have or claim to have or at any time heretofore have had or claimed to have against each or any of the Releasees, including, without limitation, any and all such Claims arising from, based upon or related to the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the franchisee and its principals, along with their related parties, release the franchisor and its related entities from all actions, causes of action, suits, debts, liens, contracts, agreements, obligations, promises, liabilities, claims, rights, demands, damages, controversies, losses, costs, and expenses. This release extends to the franchisor's predecessors, parents, subsidiaries, and affiliates, as well as their respective officers, directors, shareholders, partners, managers, members, agents, representatives, independent contractors, servants, employees, attorneys, accountants, guarantors, successors, and assigns, both past and present, in their corporate and individual capacities. It also includes all persons acting by, through, under, or in concert with any of them. These released claims encompass any nature whatsoever, whether known or unknown, suspected or unsuspected, fixed or contingent, that the franchisee or its related parties have or claim to have against the franchisor or its related entities, including claims arising from, based upon, or related to the Franchise Agreement.
This broad release of claims is a standard practice in franchising, particularly during transfers or other significant events. It aims to protect Belocal from potential legal actions by franchisees related to the franchise agreement or the operation of the franchise. The release covers a wide range of potential claims, including those that are currently unknown or unsuspected, providing a comprehensive shield for the franchisor.
For a prospective Belocal franchisee, this means that upon signing the release, they are giving up their right to sue the franchisor for any past, present, or future issues related to the franchise agreement. This includes potential claims related to misrepresentation, breach of contract, or any other grievance. Franchisees should carefully consider the implications of this release and consult with an attorney before signing, as it can significantly limit their legal recourse against Belocal. Franchisees in Washington State should note the exception regarding claims arising under the Washington Franchise Investment Protection Act, RCW 19.100.