What is the franchisee prohibited from doing regarding claims against City Wide after signing the release?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Release. 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.
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Source: Item 23 — RECEIPT (FDD pages 65–271)
What This Means (2025 FDD)
According to the 2025 City Wide Franchise Disclosure Document, a franchisee who signs the general release agrees to specific limitations regarding legal claims against City Wide. The franchisee irrevocably promises not to assert any claims or initiate any lawsuits or legal proceedings, based partially or wholly on any claim that is covered by the release. This means the franchisee gives up the right to sue City Wide for issues related to the franchise agreement's offer or sale.
The release covers all possible claims, known or unknown, that the franchisee might have against City Wide and its related parties. "Related Parties" include City Wide's predecessors, affiliates, agents, employees, successors, assigns, and their respective officers, directors, shareholders, heirs, executors, and representatives. The definition of "Claims" is broad, encompassing all types of legal actions, rights to terminate or rescind agreements, liabilities, losses, and damages.
This section of the FDD highlights the importance of carefully reviewing all aspects of the franchise agreement and seeking legal counsel before signing any documents. The franchisee is acknowledging they had the opportunity to get legal advice. By signing the release, the franchisee is giving up significant legal rights, so it's crucial to understand the implications. However, the document specifies that this release does not waive any liability City Wide may have under the Washington Franchise Investment Protection Act.