Does the Better Blend release agreement cover unknown claims?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Releasor (on behalf of itself and its parents, subsidiaries and affiliates and their respective past and present officers, directors, shareholders, managers, members, partners, agents, and employees (collectively, the "Releasing Parties")) hereby releases BBF, its affiliates, and their respective directors, officers, shareholders, employees, franchise sellers, and agents (collectively, the "Released Parties") from any and all claims, causes of action, suits, debts, agreements, promises, demands, liabilities, contractual rights and/or obligations, of whatever nature, known or unknown, which any Releasing Party now has or ever had against any Released Party based upon and/or arising out of events that occurred through the date hereof, including without limitation, anything arising out of the Franchise Agreement (collectively, "Claims").
Source: Item 23 — RECEIPTS (FDD pages 43–157)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the general release agreement does cover unknown claims. The release states that the franchisee, on behalf of itself and related parties, releases Better Blend and its affiliates from all claims, causes of action, suits, debts, agreements, promises, demands, liabilities, contractual rights, and obligations, of whatever nature, whether known or unknown. This release extends to anything arising out of the Franchise Agreement.
This means that by signing the release, a Better Blend franchisee is giving up any right to sue Better Blend for issues that have occurred up to the date of the release, even if those issues are not yet known or apparent. This could include potential future claims related to the franchise agreement or other aspects of the franchise relationship.
It is important to note that this release is not signed when purchasing the franchise but may be required in circumstances such as a renewal of the franchise or as a condition of Better Blend's approval of a sale of the franchise. Franchisees should carefully consider the implications of signing such a broad release and consult with an attorney to understand their rights and potential liabilities before signing. Some states, such as Maryland and Washington, have specific regulations regarding the scope and enforceability of such releases.