Does the Bombs Away General Release include unknown claims?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
Releasor agrees as follows:
- **1.
Release.** 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 Bombs Away Franchising, its affiliates, and their respective directors, officers, shareholders, employees, 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").
- **2.
Covenant Not to Sue.** Releasor (on behalf of all Releasing Parties) covenants not to initiate, prosecute, encourage, assist, or (except as required by law) participate in any civil, criminal, or administrative proceeding or investigation in any court, agency, or other forum, either affirmatively or by way of cross-claim, defense, or counterclaim, against any Released Party with respect to any Claim.
- **3.
Representations and Acknowledgments.** Releasor represents and warrants that: (i) Releasor is the sole owner of all Claims, and that no Releasing Party has assigned or transferred, or purported to assign or transfer, to any person or entity, any Claim; (ii) Releasor has full power and authority to sign this Release; and (iii) this Release has been voluntarily and knowingly signed after Releasor has had the opportunity to consult with counsel of Releasor's choice.
Releasor acknowledges that the release in Section 1 is a complete defense to any Claim.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the General Release does include a release of unknown claims. The document specifies that the Releasor, which includes the franchisee and related parties, releases Bombs Away Franchising from all claims, causes of action, suits, debts, agreements, promises, demands, liabilities, contractual rights, and obligations, whether known or unknown. This release covers any claims the Releasing Party has or ever had against the Released Party based on events that occurred through the date of the release, including those arising out of the Franchise Agreement.
This means that by signing the General Release, a Bombs Away franchisee is waiving their right to pursue any claims against Bombs Away, even if they are not aware of those claims at the time of signing. This could have significant implications if a franchisee later discovers a cause of action against Bombs Away that was previously unknown. The franchisee would be prevented from pursuing legal recourse due to the terms of the release.
The General Release also includes a covenant not to sue, preventing the Releasor from initiating or participating in any legal proceedings against Bombs Away related to any released claim. The Releasor represents that they are the sole owner of all claims and have the authority to sign the release, acknowledging that the release serves as a complete defense against any claim.
It is important to note that the FDD states this General Release is typically required in circumstances such as a renewal of the franchise or as a condition of approval for a sale of the franchise. Bombs Away franchisees should carefully consider the implications of signing such a broad release and consult with an attorney to fully understand their rights and obligations before signing. The Illinois Rider to the Franchise Agreement notes that the franchisee cannot waive compliance with the Illinois Act, enter into a settlement agreement, or execute a general release regarding a potential or actual lawsuit.