Does the Benjamin Franklin Plumbing General Release cover claims that are currently unknown?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
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- California Acknowledgment. If you or the franchise to which this General Release relates is located in California, you and the Owners understand and agree that this release extends to all claims, and you and they expressly waive all rights under Section 1542 of the Civil Code of the State of California, which provides:
"A general release does not extend to claims which the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party."
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing FDD, the General Release includes a waiver of rights under California Civil Code Section 1542, which addresses claims that are unknown at the time of signing the release. Specifically, if a Benjamin Franklin Plumbing franchisee or their owners are located in California, they are agreeing that the release extends to all claims, including those they do not know or suspect to exist at the time of signing. This means they are waiving their right to later assert a claim that, if known at the time of the release, would have materially affected their settlement with the franchisor.
For a Benjamin Franklin Plumbing franchisee, this waiver means they are giving up the ability to pursue legal action for issues that they are not yet aware of. This could include hidden problems with the franchise, breaches of contract that have not yet surfaced, or other unforeseen issues. The franchisee is agreeing to release Benjamin Franklin Plumbing from any liability for these unknown claims, even if those claims later turn out to be significant.
It is important to note that the General Release states, "Where required by state law, this Release will be modified so that it does not apply to your rights under the state law. Please see Exhibit K to the disclosure document." The General Release also does not apply to claims arising under the Washington Franchise Investment Protection Act. Prospective franchisees should carefully review the General Release and consult with an attorney to fully understand the implications of waiving their rights to unknown claims, especially if they are located in California or other states with specific franchise laws.