What is the scope of the claims released by the franchisee in the Craters & Freighters agreement?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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. 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 _____________ and the Franchise Agreement. The Franchisee Releasing Parties acknowledge and agree that the foregoing waiver is an essential, integral, and material term of this Agreement. The Franchisee Releasing Parties further acknowledge and agree that no violation of this Agreement will void the release set forth in this Agreement.
-
- Confidentiality. Each of Franchisee and Guarantor acknowledges and agrees that this Agreement and matters discussed in relation thereto are entirely confidential.
Source: Item 23 — RECEIPTS (FDD pages 50–193)
What This Means (2025 FDD)
According to the 2025 FDD, the release of claims by the franchisee covers any direct or indirect claims against Craters & Freighters or its affiliates that arise from any event, act, or omission occurring before the effective date of the franchise agreement. This includes a commitment from the franchisee not to initiate or assist in any legal actions against Craters & Freighters for damages, injunctive relief, or any other losses related to events before the agreement's effective date.
The release is intended to be a full and unconditional general release, extending to all claims, whether known or unknown, expected, or unanticipated. The franchisee acknowledges that even if new claims or facts are discovered later, the intention is to fully settle and release all matters. The franchisee also confirms they have had sufficient opportunity to gather all necessary information before entering the agreement and release.
However, the release of claims does not apply to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and its associated rules. The franchisee also acknowledges that no oral, written, visual, or other promises, agreements, commitments, representations, or understandings that expand upon or are inconsistent with the Franchise Disclosure Document or the Franchise Agreement were made, except as explicitly stated in signed addenda. This ensures that the written agreement is the complete and final understanding between the parties, except for claims under Washington law.