Does the Desi District General Release cover unknown claims against Desi District?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
Releasor (on behalf of itself and its parents, subsidiaries and affiliates and their respective past and present officers, directors, shareholders, managers, members, partners, agents, and employees (collectively, the "Releasing Parties")) hereby releases Desi District Franchise Group, its affiliates, and their respective directors, officers, shareholders, employees, and agents (collectively, the "Released Parties") from any and all claims, causes of action, suits, debts, agreements, promises, demands, liabilities, contractual rights and/or obligations, of whatever nature, known or unknown, which any Releasing Party now has or ever had against any Released Party based upon and/or arising out of events that occurred through the date hereof, including without limitation, anything arising out of the Franchise Agreement (collectively, "Claims").
Source: Item 23 — RECEIPTS (FDD pages 52–140)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, the General Release covers both known and unknown claims. The Releasor, which is the franchisee, releases Desi District Franchise Group from any and all claims, causes of action, suits, debts, agreements, promises, demands, liabilities, contractual rights and/or obligations, of whatever nature, known or unknown, which any Releasing Party now has or ever had against any Released Party based upon and/or arising out of events that occurred through the date hereof, including without limitation, anything arising out of the Franchise Agreement.
This means a franchisee is giving up their right to sue Desi District for anything that has happened up to the date the release is signed, even if the franchisee is not aware of the issue. This could include unknown breaches of contract, misrepresentations, or other potential claims. The release extends to the franchisee's parents, subsidiaries, affiliates, and their respective past and present officers, directors, shareholders, managers, members, partners, agents, and employees.
However, franchisees in certain states like New York, Maryland, North Dakota, Rhode Island and Washington should note that there are specific addenda and statutes that may supersede the franchise agreement, particularly concerning waivers, releases, and rights under franchise investment laws. For example, the North Dakota addendum states that franchisees are not required to sign a general release upon renewal of the agreement. The Washington addendum notes that a release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. Franchisees should carefully review these state-specific provisions and consult with an attorney to understand their rights and obligations.