In the Engel & Volkers Release, what is the effect of the franchisee acknowledging that claims or facts may be discovered later?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
"A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor."
In making this voluntary express waiver, Franchisee [and Owner each] acknowledges that Claims or facts in addition to or different from those which are now known or believed to exist with respect to the matters mentioned herein may later be discovered and that it is the intention of Franchisee [and Owner, respectively] to hereby fully and forever settle and release any and all matters, regardless of the possibility of later discovered Claims or facts. This Release is and shall be and remain a full, complete and unconditional general release. Franchisee [and Owner each] acknowledges and agrees that the foregoing waiver of Section 1542 is an essential, integral and material term of this Release.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the franchisee's acknowledgement that claims or facts may be discovered later means they intend to fully settle and release all matters, regardless of any claims or facts discovered later. This acknowledgement constitutes a voluntary express waiver, indicating the franchisee's intent to release all matters fully and forever, irrespective of subsequently discovered claims or facts. This waiver is considered an essential and integral part of the release agreement.
This provision means that an Engel & Volkers franchisee is giving up their right to pursue any future claims against Engel & Volkers, even if those claims are based on information that is not yet known at the time of signing the release. This is a significant commitment, as it limits the franchisee's legal recourse in the event of unforeseen issues or disputes that may arise after the release is executed.
However, in Maryland and Washington, the general release provisions do not apply to any liability under the Maryland Franchise Registration and Disclosure Law or the Washington Franchise Investment Protection Act, respectively. This means that franchisees in those states retain certain rights and protections under state franchise laws, despite the general release. Franchisees should seek legal counsel to fully understand the implications of this release and waiver, especially concerning their rights and obligations under the franchise agreement and applicable state laws.