For Brightstar Care, what is the scope of the 'Claims' that Assignor Parties release?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. 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 Assignor Parties release the Franchisor Parties from any and all claims, debts, liabilities, demands, obligations, costs, expenses, actions, and causes of action. This release encompasses all claims, whether known or unknown, vested or contingent, that the Assignor Parties may currently hold or acquire in the future.
The scope of these released claims broadly relates to the Old Franchise Agreement, any other agreements between the Assignor and Franchisor or the BrightStar Parties, the Franchised Business, or the relationship between the Assignor and Franchisor or the BrightStar Parties through the Hard Closing Date. The release extends to known or unknown damages or other losses, including alleged violations of deceptive or unfair trade practices laws, franchise laws, or other local, municipal, state, federal, or other laws, statutes, rules, or regulations. It also includes alleged violations of the Old Franchise Agreement or any other agreement between the Assignor and Franchisor or the BrightStar Parties through and including the Execution Date.
In essence, this clause ensures a comprehensive and forward-looking release of potential liabilities, providing Brightstar Care with protection from future claims arising from past activities or agreements related to the franchise. A prospective franchisee acting as an Assignor should carefully review this clause with legal counsel to fully understand the implications of releasing such a broad range of potential claims.