Under what circumstances does the release of claims in Section 4 of the Craters & Freighters agreement NOT apply?

According to the 2025 Craters & Freighters Franchise Disclosure Document, the release of claims outlined in Section 4 of the agreement does not apply to claims arising under the Washington Franchise Investment Protection Act, specifically RCW 19.100, and its associated rules. This means that while franchisees generally release Craters & Freighters from liability for events occurring before the agreement's effective date, this release does not extend to claims related to violations of Washington's franchise law.

For a prospective Craters & Freighters franchisee in Washington, this is a crucial protection. It allows them to pursue legal action under the Washington Franchise Investment Protection Act if they believe Craters & Freighters has violated that law, even if they have signed a general release. This could include claims related to misrepresentation, failure to disclose required information, or other violations of the Act.

This exception to the release of claims is specific to Washington state law. Franchisees in other states may not have the same protection. It is important for prospective franchisees to understand the franchise laws in their specific state and how they interact with the franchise agreement's release provisions. Consulting with an attorney is advisable to fully understand these rights and obligations.