Does the Craters & Freighters Franchisee Releasing Parties' waiver extend to claims that are not known?
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.
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 Craters & Freighters' 2025 Franchise Disclosure Document, the release of claims by the Franchisee Releasing Parties is designed to be a comprehensive and unconditional general release. This extends to all claims, regardless of whether they are known, expected, or anticipated against the Franchisor Released Parties. This means that even if a franchisee is unaware of a potential claim against Craters & Freighters at the time of signing the release, they are still waiving their right to pursue that claim.
The FDD emphasizes that this waiver applies regardless of whether any unknown, unsuspected, or unanticipated claim would significantly impact the settlement and compromise of any matter mentioned in the agreement. Franchisee Releasing Parties acknowledge that they may later discover claims or facts different from or in addition to those currently known, but they still intend to fully settle and release all matters. This suggests Craters & Freighters wants to ensure a clean break and avoid future legal disputes, even those based on unforeseen issues.
However, the release of claims does not apply to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder. This carve-out provides some protection to franchisees operating in Washington state, allowing them to pursue claims under that specific law, regardless of the general release. Prospective franchisees should carefully consider the implications of this broad release, especially concerning potential future claims that are not yet known.
The document also states that the Franchisee Releasing Parties acknowledge they have had adequate opportunity to gather all information necessary to enter into the agreement and release. This highlights the importance of conducting thorough due diligence before signing the agreement, as the franchisee is expected to be aware of all potential issues and claims at the time of signing. It is recommended that prospective franchisees seek legal counsel to fully understand the scope and implications of this release before committing to the franchise agreement.