What is the effect of later discovered claims or facts on the Craters & Freighters release?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 50–193)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the release of claims by the franchisee is intended to be a full and unconditional general release, regardless of whether any unknown, unsuspected, or unanticipated claim would materially affect settlement and compromise of any matter mentioned in the agreement. This means that even if a franchisee later discovers new claims or facts that were not known at the time of signing the release, the franchisee is still bound by the terms of the release.
The document states that the franchisee acknowledges that additional or different claims or facts may be discovered later, but it is still their intention to fully and forever settle and release all matters, regardless of such discoveries. This underscores the importance of conducting thorough due diligence and gathering all necessary information before entering into the franchise agreement and signing the release.
This type of clause is common in franchise agreements to provide certainty and finality to the relationship between the franchisor and franchisee. However, it also places a significant responsibility on the franchisee to ensure they are fully aware of all potential claims and facts before signing the release, as later discovery will not invalidate the release. Franchisees should seek legal counsel to fully understand the implications of such a release before signing.