Does the Crave General Release cover claims arising after the execution date?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Franchisee and Franchisee's Principal(s) do, for themselves and their successors and assigns, hereby release and forever discharge generally Franchisor and any affiliate, wholly owned or controlled limited liability company, subsidiary, successor or assign thereof and any shareholder, officer, director, employee, agent, executor, administrator, estate, trustee or heir of any of them (the "Released Franchisor Party"), from any and all claims, demands, damages, injuries, agreements and contracts, indebtedness, accounts of every kind or nature, whether presently known or unknown, suspected or unsuspected, disclosed or undisclosed, actual or potential, which Franchisee or Franchisee's Principal(s) may now have, or may hereafter claim to have or to have acquired of whatever source or origin, arising out of or related to any and all transactions of any kind or character at any time prior to and including the date hereof, including generally any and all claims at law or in equity, those arising under the common law or state or federal statutes, rules or regulations such as, by way of example only, franchising, securities and antitrust statutes, rules or regulations, in any way arising out of or connected with the Franchise Agreement or this General Release, and further promises never from this day forward, directly or indirectly, to institute, prosecute, commence, join in, or generally attempt to assert or maintain any action thereon against any Released Franchisor Party, in any court or tribunal of the United States of America, any state thereof, or any other jurisdiction for any matter or claim arising before execution of this General Release.
In the event Franchisee or Franchisee's Principal(s) breaches any of the promises, covenants, or undertakings made herein by any act or omission, Franchisee and Franchisee's Principal(s) shall pay, by way of indemnification, all costs and expenses of any Released Franchisor Party caused by the act or omission, including reasonable attorneys' fees and costs.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the general release that a franchisee signs releases Crave from claims arising from events that occurred before the execution of the General Release. Specifically, the franchisee releases Crave from claims, demands, damages, and agreements, whether known or unknown, that the franchisee may have against Crave. This release applies to all transactions up to and including the date of the General Release.
This means that as a Crave franchisee, you are giving up your right to sue Crave for any issues that occurred before you signed the release. This includes waiving rights to claims, even those you are not yet aware of. However, the release does not apply to claims arising from representations made by Crave in its Franchise Disclosure Document.
It is important to note that the scope and enforceability of general releases can vary by state. For example, the Maryland addendum to the FDD states that the general release required for renewal, sale, or transfer does not apply to liabilities under Maryland's franchise law. Similarly, in Indiana, franchisees cannot waive claims or rights. Therefore, prospective Crave franchisees should carefully review the FDD, including any state-specific addenda, and consult with an attorney to understand the full implications of the general release in their specific state.