Does the Craters & Freighters release cover claims arising from events before the effective date?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Investments | ||||||||
|---|---|---|---|---|---|---|---|---|
| Money Market Funds | $32,240 | $ | - $ | - $ | 32,240 | |||
| Mutual Funds | 11,685 | - | (1,500) | 10,185 | ||||
| Equities and Other Funds | 338,874 $382,799 | 253,570 $253,570 | $(1,500) | $634,869 | - | 592,444 |
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.
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- Full and Unconditional Release.
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 covers events, acts, or omissions that occurred prior to the effective date of the agreement. This means that by signing the release, the franchisee agrees not to pursue any claims against Craters & Freighters or its affiliates based on anything that happened before the franchise agreement's effective date. This includes any damages, losses, or injuries, whether known or unknown at the time of signing the release.
The release is intended to be a full and unconditional general release, extending to all claims, regardless of whether they are known, expected, or anticipated. The franchisee acknowledges that they may later discover claims or facts that are different from what they currently know, but they still intend to fully settle and release all matters. This suggests that Craters & Freighters wants to resolve any potential legacy issues or disputes stemming from past interactions or events.
However, the release of claims does not apply to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and its rules. This carve-out indicates that franchisees in Washington State retain certain statutory rights and protections despite signing the general release. Prospective franchisees should carefully consider the implications of this release, particularly concerning any pre-existing issues or concerns they may have with Craters & Freighters. Consulting with an attorney is advisable to fully understand the scope and impact of the release before signing the franchise agreement.