Does the release granted to Big Blue Swim School extend to unknown claims?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
ves of the Franchisee legal entity must sign below individually** (Signature | Date) (Signature | Date)
(Name Printed)
(Name Printed)
EXHIBIT G
FORM OF GENERAL RELEASE
BIG BLUE SWIM SCHOOL FRANCHISING, LLC
GRANT OF FRANCHISOR CONSENT AND RELEASE BY FRANCHISEE
| | 2024 | 2023 | |---|---|---| | Deferred revenues - beginning of year | $8,055,085 | $7,526,324 | | Revenue recognized during the year | (1,442,723) | (831,239) | | New deferrals due to cash received | 80,000 | 1,360,000 | | Deferred revenues - end of year | $6,692,362 | $8,055,085 | Consistent with the previous introduction, you, on behalf of yourself and your successors, heirs, executors, administrators, personal representatives, agents, assigns, partners, owners, directors, officers, principals, employees, and affiliated entities (collectively, the "Releasing Parties"), hereby forever release and discharge us and our parent and other affiliated entities, and our and their respective current and former officers, directors, owners, principals, employees, agents, representatives, successors, and assigns (collectively, the "Big Blue Parties") from any and all claims, damages, demands, debts, causes of action, suits, duties, liabilities, costs, and expenses of any nature and kind, whether presently known or unknown, vested or contingent, suspected or unsuspected (all such matters, collectively, "Claims"), that you and any other Releasing Party now have, ever had, or, but for this Consent, hereafter would or could have against any Big Blue Party (1) arising out of or related in any way to the Big Blue Parties' performance of or failure to perform their obligations under the Franchise Agreement before the date of your signature below, (2) arising out of or related in any way to our offer and grant to you of your Big Blue Swim School franchise, or (3) otherwise arising out of or related in any way to your and the other Releasing Parties' relationship, from the beginning of time to the date of your signature below, with any of the Big Blue Parties.
The released Claims include, but are not limited to, any Claim alleging violation of any deceptive or unfair trade practices laws, franchise laws, or other local, municipal, state, federal, or other laws, statutes, rules, or regulations. You and the other Releasing Parties acknowledge that you and they may after the date of the signatures below discover facts different from, or in addition to, those facts currently known to you and them, or which you and they now believe to be true, with respect to the Claims released by this document. You and the other Releasing Parties nevertheless agree that the release set forth in this document has been negotiated and agreed on despite such acknowledgement and despite any federal or state statute or common law principle which may provide that a general release does not extend to claims which are not known to exist at the time of execution.
You, on behalf of yourself and the other Releasing Parties, further covenant not to sue any Big Blue Party on any Claim released by this paragraph and represent that you have not assigned any Claim released by this paragraph to any individual or entity that is not bound by this paragraph.
We also are entitled to a release and covenant not to sue from your owners. By his, her, or their separate signatures below, your owners likewise grant to us the release and covenant not to sue provided above.
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**[NOTE: The following language in brackets and bold type applies only when the franchisee operates in California or California law is deemed to apply.
Source: Item 23 — RECEIPTS (FDD pages 76–278)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, the release granted does extend to unknown claims. The franchisee, on behalf of themselves and their related parties, releases Big Blue Swim School and its affiliates from all claims, damages, and liabilities, whether known or unknown, vested or contingent, suspected or unsuspected. This release covers claims arising from the franchise agreement, the offer and grant of the franchise, or the relationship between the franchisee and Big Blue Swim School.
The release includes claims alleging violations of deceptive trade practices, franchise laws, or other regulations. The document explicitly states that the franchisee acknowledges they may discover new facts after signing that are different from or in addition to what they currently know. Despite this acknowledgment, the franchisee agrees that the release is still valid, even if a statute or common law principle states that a general release does not cover unknown claims.
However, the FDD includes a specific note regarding California law. If the Big Blue Swim School franchise is in California, the franchisee acknowledges familiarity with Section 1542 of the California Civil Code, which states that a general release does not extend to unknown claims that would have materially affected the settlement if known. By signing the release, the franchisee waives their rights under Section 1542 and any similar statute under other state or federal laws, to the fullest extent that such right or benefit may lawfully be waived.
For prospective franchisees, this means they are giving up their right to sue Big Blue Swim School for issues that they are not even aware of at the time of signing the release. Franchisees should carefully consider this provision and consult with an attorney to understand the full implications before signing. Franchisees in Washington have additional protections, as the general release does not apply to claims arising under the Washington Franchise Investment Protection Act.