Is the City Wide franchisee releasing claims that are currently unknown?
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 the 2025 City Wide Franchise Disclosure Document, franchisees are releasing claims that are currently unknown. The release states that the franchisee releases City Wide from 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. The franchisee also agrees not to initiate any suit or proceeding based on any claim released.
This means that a franchisee is waiving their rights to sue City Wide for any reason, even if they are not aware of the reason at the time of signing the release. This could have significant implications for a franchisee if they later discover that City Wide has engaged in some wrongdoing that has harmed their business. By signing the release, the franchisee would be giving up their right to seek compensation for that harm.
However, the 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. Furthermore, franchisees in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington and Wisconsin do not complete the Statement of Prospective Franchisee. Residents of California, Maryland, or Washington, or if the franchised business will be located in those states, should not sign the Statement of Franchisee.