Does the General Release for Cilantro Taco Grill cover claims that are presently unknown?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
General Release is executed without reliance on any statements or any representations not contained herein. Franchisee and Franchisee's Principal(s) knowingly waive (1) any claim that this General Release was induced by any misrepresentation or nondisclosure, and (2) any right to rescind or avoid this General Release based upon presently existing facts, known or unknown.
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to the 2024 FDD, the General Release for Cilantro Taco Grill does cover claims that are presently unknown. The franchisee and their principals waive any right to rescind or avoid the General Release based on facts that are either known or unknown at the time of execution.
This means that by signing the General Release, a Cilantro Taco Grill franchisee is giving up their right to make future claims against the franchisor, even if those claims are based on something they are not yet aware of. This is a significant commitment, as it could prevent a franchisee from seeking legal recourse for issues that arise later but were not known at the time of signing the release.
It is important for a prospective Cilantro Taco Grill franchisee to carefully consider the implications of this General Release and to seek legal counsel before signing it. Understanding the full scope of the release and its potential impact on future rights is crucial. Franchisees should ensure they are comfortable with waiving their rights to claims based on unknown facts before proceeding with the franchise agreement.