What is the effect of the 'Risk of Changed Facts' clause on the Body20 General Release?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- **2.
Risk of Changed Facts.** Franchisee, Transferee, and Guarantors understand that the facts in respect of which the release in Section 1 is given may turn out to be different from the facts now known or believed by them to be true.
Franchisee, Transferee, and Guarantors hereby accept and assume the risk of the facts turning out to be different and agree that the release in Section 1 shall nevertheless be effective in all respects and not subject to termination or rescission by virtue of any such difference in facts.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the 'Risk of Changed Facts' clause within the general release means that franchisees, transferees, and guarantors acknowledge the possibility that the facts underlying the release may change or be different from what they currently know or believe.
By agreeing to this clause, franchisees, transferees, and guarantors accept the risk that these facts may turn out to be different. More importantly, they agree that the general release remains fully effective regardless of any such differences in facts.
This means the release cannot be terminated or rescinded simply because the facts change or new information comes to light after the release is signed. This clause places the burden on the franchisee to conduct thorough due diligence and consider all potential risks before signing the release, as they will be bound by it even if unforeseen issues arise later.