Does the release in the Bombs Away franchise agreement cover claims arising after the date of the release?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- **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").
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 that a franchisee may be required to sign only covers claims arising through the date of the release. The release specifies that the franchisee releases Bombs Away from any claims, known or unknown, that the franchisee has or ever had against Bombs Away, based upon events that occurred through the date of the release, including anything arising out of the Franchise Agreement.
This means that a Bombs Away franchisee is only waiving their rights to claims that existed up to the date they sign the release. It does not prevent them from bringing future claims based on events that occur after the release is signed.
Bombs Away may require a general release from a franchisee in circumstances such as a renewal of their franchise or as a condition of approval for a sale of their franchise. A franchisee should carefully consider the implications of signing such a release and consult with an attorney before doing so.