Does the general release in the Craters & Freighters agreement extend to unknown claims?
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 the 2025 Craters & Freighters Franchise Disclosure Document, the general release provided by the franchisee extends to all claims, including those that are unknown or unanticipated. The FDD states that the release is intended to be a full and unconditional general release, as commonly interpreted, covering all claims regardless of whether they are known, expected, or anticipated. This means that the franchisee is waiving their right to pursue any claims against Craters & Freighters, even if they later discover new facts or claims that were previously unknown.
The document emphasizes that this waiver is voluntary and express, with the franchisee acknowledging the possibility of discovering new claims or facts. Despite this possibility, the franchisee intends to fully settle and release all matters. The franchisee also acknowledges that they have had adequate opportunity to gather all necessary information before entering into the agreement and release.
This type of broad release is common in franchise agreements, as it aims to provide franchisors with protection against future litigation. However, it is crucial for prospective Craters & Freighters franchisees to carefully consider the implications of such a release and to seek legal counsel to fully understand the rights they are waiving. The FDD does note an exception: the release does not apply to claims arising under the Washington Franchise Investment Protection Act.