Does the Brightstar Care release of claims extend to claims for negligence or other torts?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Assignor and each of their respective heirs, successors, assigns, affiliates, shareholders, directors, employees, and agents, and on behalf of any other party claiming an interest through them (collectively and individually referred to as the "Assignor Parties" for purposes of Sections 14, 15 and 16 below), release and forever discharge us, our predecessors, successors, affiliates, directors, officers, shareholders, agents, employees and assigns (collectively and individually referred to as the "Franchisor Parties" for purposes of Sections 14, 15 and 16) and BrightStar Care Franchisees (Franchisor Parties and BrightStar Care Franchisees are collectively referred to as "BrightStar Parties" for purposes of Section 14, 15, and 16) of and from any and all claims, debts, liabilities, demands, obligations, costs, expenses, actions and causes of action, whether known or unknown, vested or contingent, which Assignor Parties may now or in the future own or hold, that in any way relate to the Old Franchise Agreement, any other agreement between Assignor and Franchisor or the BrightStar Parties, the Franchised Business, or the relationship between Assignor and Franchisor or the BrightStar Parties through the Hard Closing Date (collectively, "Claims"), for known or unknown damages or other losses including, but not limited to, any alleged violations of any deceptive or unfair trade practices laws, franchise laws, or other local, municipal, state, federal, or other laws, statutes, rules or regulations, and any alleged violations of the Old Franchise Agreement or any other agreement between Assignor and Franchisor or the BrightStar Parties through and including the Execution Date.
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the release of claims is broad and comprehensive, potentially extending to claims for negligence or other torts. The release covers all claims, debts, liabilities, demands, obligations, costs, expenses, actions, and causes of action, whether known or unknown, vested or contingent. This includes any alleged violations of any deceptive or unfair trade practices laws, franchise laws, or other local, municipal, state, federal, or other laws, statutes, rules or regulations.
For a prospective Brightstar Care franchisee, this means that upon signing the release, they are giving up their right to sue Brightstar Care for a wide range of potential issues, including those that may arise from negligence or other torts. The release extends to claims related to the Old Franchise Agreement, any other agreement between the franchisee and Brightstar Care, the Franchised Business, or the relationship between the franchisee and Brightstar Care. This release is effective through the Hard Closing Date and includes damages or other losses, whether known or unknown.
It is important for franchisees to understand the full scope of this release before signing it. Given the broad language, it is advisable to consult with an attorney to fully understand the implications of waiving these rights. Franchisees in California should also be aware of Section 1542 of the Civil Code of the State of California, which states that a general release does not extend to claims that the releasing party does not know or suspect to exist at the time of executing the release, and that if known, would have materially affected their settlement with the debtor or released party. However, even this protection can be waived.
Brightstar Care franchisees should be aware that they are acknowledging they have had adequate opportunity to gather all information necessary to enter into the Agreement and Release and need no further information or knowledge of any kind that would otherwise influence the decision to enter into this Agreement. The release is intended to be a full, complete, and unconditional general release, and no violation of the Agreement will void the release.