What consideration is given for the Big O Tires standard release form?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
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BIG O: Big O Tires, LLC
EXHIBIT "C"
BIG O STANDARD RELEASE FORM
_______________________________ ("Company"), the Franchisee under the Big O Tires, LLC Franchise Agreement ("Franchise Agreement") for a Big O store identified below ("Store"), and __________________, heretofore an owner or officer of Company or beneficially interested in the business of Company, for and in consideration of the consent of Big O Tires, LLC. ("Big O") to the renewal of the Franchise Agreement, and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, have, jointly and severally, remised, released, and forever discharged, and by these presents do for itself/himself/herself and its/his/her successors, assigns, directors, officers, owners, subsidiaries, affiliates, executors, administrators, legatees and heirs, hereby remise, release, and forever discharge Big O and its parent corporation, subsidiaries, affiliates, successors and assigns, and their respective directors, officers, agents, servants, and employees (individually and collectively, "Big O Group"), from all debts, accounts, claims, demands, covenants, judgments, agreements, promises, damages, suits and causes of action of any nature whatsoever, whether at law or in equity, which they, or their respective successors, assigns, affiliates, subsidiaries, executors, administrators, legatees and heirs, may now have against Big O Group including, but not limited to, matters arising out of or in connection with the circumstances surrounding the purchase (directly or by assumption of agreement) of the franchise for the Store or the execution (or assumption) by Company of the Franchise Agreement, the operation of the Store, the Franchise Agreement and the franchisorfranchisee relationship; provided, however, that this release shall not apply to credits due Company for reimbursement under product warranties issued by Big O and honored by Company prior to the date of this release. Each undersigned further states that it has read the foregoing, understands that it is a general release and intends to be legally bound thereby.
The following provision applies for any parties in California:
It is intended that this release shall be effective as a bar to each and every action and cause of action related to the released claims, whether known or unknown, foreseen or unforeseen, suspected or unsuspected, that each party may have against the Big O Group and each party expressly waives any and all rights under Section 1542 of the California Civil Code, which provides:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT 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.
The following provision applies for any parties in Montana:
It is intended that this release shall be effective as a bar to each and every action and cause of action related to the released claims, whether known or unknown, foreseen or unforeseen, suspected or unsuspected, that each party may have against the Big O Group and each party expressly waives any and all rights under Section 28-1-1602 of the Montana Code Annotated, which provides:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN THE CREDITOR'S FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH, IF KNOWN BY THE CREDITOR, MUST HAVE MATERIALLY AFFECTED THE CREDITOR'S SETTLEMENT WITH THE DEBTOR.
The following provision applies for any parties in North Dakota:
It is intended that this release shall be effective as a bar to each and every action and cause of action related to the released claims, whether known or unknown, foreseen or unforeseen, suspected or unsuspected, that each party may have against the Big O Group and each party expressly waives any and all rights under Section 9-13-02 of the North Dakota Century Code, which provides:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN THE CREDITOR'S FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY THE CREDITOR, MUST HAVE MATERIALLY AFFECTED THE CREDITOR'S SETTLEMENT WITH THE DEBTOR.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, the standard release form involves consideration for the consent of Big O Tires, LLC to the renewal of the Franchise Agreement. This consideration includes "other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged".
The release encompasses the franchisee (referred to as "Company"), an owner or officer of the Company, or someone beneficially interested in the business. By signing the release, these parties discharge Big O and its affiliates from all debts, accounts, claims, demands, covenants, judgments, agreements, promises, damages, suits, and causes of action. This includes matters related to the purchase of the franchise, the Franchise Agreement, the operation of the store, and the franchisor-franchisee relationship.
However, the release does not apply to credits due to the Company for reimbursement under product warranties issued by Big O and honored by the Company before the date of the release. Additionally, there are specific provisions for assignors, assignees, and guarantors in Washington, stating that the release does not apply to claims under the Washington Franchise Investment Protection Act, RCW 19.100, and its rules. Similarly, for assignors, assignees, and guarantors in California, the agreement includes a waiver of rights under Section 1542 of the California Civil Code, which pertains to unknown claims that could materially affect the settlement.