Are Big Blue Swim School owners also required to grant a release and covenant not to sue?

According to the 2025 Big Blue Swim School FDD, Big Blue Swim School is entitled to a release and covenant not to sue from the franchise owners. This means that the owners, by signing separately, agree to release Big Blue Swim School from certain claims and agree not to sue them. This agreement is in addition to the release and covenant provided by the franchisee themselves.

The release covers a broad range of potential claims, damages, and liabilities, whether known or unknown at the time of signing. This includes claims related to the performance of obligations under the Franchise Agreement, the offer and grant of the franchise, or the relationship between the franchisee and Big Blue Swim School. The release also encompasses claims alleging violations of deceptive trade practices, franchise laws, or other applicable laws and regulations.

For franchisees operating in California, or if California law is deemed to apply, there is a specific acknowledgment regarding Section 1542 of the California Civil Code. This section states that a general release does not extend to claims that the releasing party is unaware of, which, if known, would have materially affected their settlement. However, the release includes a waiver of these rights under Section 1542, meaning the releasing parties are giving up their right to pursue claims they are not currently aware of. This is a common practice in franchise agreements, but franchisees should carefully consider the implications of waiving these rights before signing.