What is the effect of the general release on future claims against Craters & Freighters?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor and/or any affiliate of Franchisor, which Franchisee Releasing Parties may have had or may now have directly or indirectly against any or all of the Franchisor Released Parties based upon or arising out of any event, act, or omission that has occurred prior to the Effective Date. The Franchisee Releasing Parties further covenant and agree to never institute, prosecute or assist others to institute or prosecute, or in any way aid any claim, suit, action at law or in equity, or otherwise assert any claim against any or all of the Franchisor Released Parties for any damages (actual, consequential, punitive or otherwise), injunctive relief, or other loss or injury either to person or property, cost, expense, attorneys' fees, amounts paid on account of recovery or settlement, or any other damage or harm whatsoever, based upon or arising out of any event, act, or omission that has occurred prior to the Effective Date.
Full and Unconditional Release.
The release of claims set forth in Section 4 is intended by the Franchisee Releasing Parties to be a full and unconditional general release, as that phrase is used and commonly interpreted, extending to all claims of any nature, whether or not known, expected or anticipated to exist in favor of the Franchisee Releasing Parties against the Franchisor Released Parties, regardless of whether any unknown, unsuspected or unanticipated claim would materially affect settlement and compromise of any matter mentioned herein.
In making this voluntary express waiver, the Franchisee Releasing Parties acknowledge that claims or facts in addition to or different from those which are now known to exist with respect to the matters mentioned herein may later be discovered and that it is the Franchisee Releasing Parties' intentions to hereby fully and forever settle and release any and all matters, regardless of the possibility of later discovered claims or facts.
The Franchisee Releasing Parties acknowledge that they have had adequate opportunity to gather all information necessary to enter into this Agreement and release.
This release is and shall be and remain a full, complete, and unconditional general release relating to the
Source: Item 23 — RECEIPTS (FDD pages 50–193)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the general release is designed to be a comprehensive and unconditional waiver of all claims a franchisee may have against Craters & Freighters. This release extends to all claims, whether known or unknown, expected, or unanticipated, that the franchisee might have against Craters & Freighters. The document emphasizes that this waiver is made voluntarily, with the franchisee acknowledging that future claims or facts may emerge that are different from what is currently known.
This means that a franchisee agrees to fully settle and release all matters, even those that might be discovered later. The FDD states that franchisees confirm they've had enough time to gather all necessary information before agreeing to the release. The release is described as complete and unconditional, pertaining to both the specific agreement and the overall Franchise Agreement.
However, the release of claims does not apply to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and its associated rules. The document also specifies that Colorado law governs the agreement. Prospective franchisees should be aware of the broad scope of this release and consult with an attorney to fully understand its implications before signing any agreements.