What definition does City Wide use for 'Claims' that the franchisee releases?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee hereby absolutely and forever releases and discharges CITY WIDE and its Related Parties (as defined below), from and against any and all Claims (as defined below) of Franchisee arising out of or relating to the offer or sale of the Franchise Agreement(s), including violations of any federal or state law, rule, or regulation pertaining thereto. "Related Parties" means predecessors, affiliates, agents, employees, successors, assigns, and their respective officers, directors, shareholders, heirs, executors, and representatives. "Claims" means any and all claims, proceedings, demands, causes of actions, rights to terminate and rescind, liabilities, losses, damages, and rights of every kind and nature whatsoever, whether now known or unknown, suspected or unsuspected, at law or in equity, which the releasing party now has, owns or holds, at any time before this time ever had, owned or held, or at any time after this time has, owns or holds. Franchisee hereby irrevocably covenants not to assert, or to initiate any suit or proceeding based in whole or in part upon any Claim released hereunder.
Source: Item 23 — RECEIPT (FDD pages 65–271)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the term "Claims" in the context of the release agreement is broadly defined. It encompasses any and all claims, proceedings, demands, causes of action, rights to terminate and rescind, liabilities, losses, damages, and rights of every kind and nature whatsoever. This definition includes both known and unknown issues, those suspected or unsuspected, and those existing in law or equity. The release covers claims the franchisee currently has, previously had, or may have in the future.
This means a franchisee is giving up a wide range of potential legal rights against City Wide, including known and unknown issues, when signing the release. The franchisee also agrees not to initiate any legal action based on any released claim. This is a significant commitment, as it could prevent a franchisee from pursuing legal remedies for issues that arise in the future, even if those issues are not known at the time of signing the release.
It is important to note that this release does not waive any liability City Wide may have under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder. Additionally, franchisees residing in or operating in California, Maryland, or Washington should carefully review the implications of signing such a release, as their rights may be affected differently due to state-specific franchise laws. Prospective franchisees should seek legal counsel to fully understand the scope and implications of this release before signing.