Does the Craters & Freighters release prevent the franchisee from assisting others in prosecuting claims?
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.
-
- 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 franchisee is restricted from assisting others in prosecuting claims against the franchisor. Specifically, the Franchisee Releasing Parties agree to not assist others in instituting or prosecuting any claim against the Franchisor Released Parties for damages or other losses arising from events before the Effective Date. This includes not aiding any legal actions against Craters & Freighters.
This clause means that as a Craters & Freighters franchisee, you waive your right to participate in or support any legal claims against the franchisor that relate to events that occurred before the franchise agreement's effective date. This waiver is comprehensive, covering all types of claims, whether known or unknown at the time of signing the agreement.
The FDD emphasizes that this release is intended to be a full and unconditional general release, acknowledging that future claims or facts may emerge that differ from what is currently known. The franchisee confirms they have had sufficient opportunity to gather all necessary information before agreeing to this release. However, this release does not apply to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and its associated rules.
Prospective franchisees should carefully consider the implications of this release, as it limits their ability to seek legal recourse or support others in doing so against Craters & Freighters for past events. It is advisable to consult with an attorney to fully understand the scope and impact of this clause before signing the franchise agreement.