Does the general release in the Engineering For Kids franchise agreement release all claims?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
are the only party that employs your employees (even though we may provide you with advice, guidance, and training); (c) we are not the employer of any of your employees, and we will not play any role in decisions regarding their employment (including but not limited to matters such as recruitment, hiring, compensation, scheduling, employee and labor matters, review, discipline, and/or dismissal); (c) the guidance that we provide and requirements under which you will operate are intended to promote and protect the value of the brand and the Proprietary Marks; and (d) you have made (and will remain responsible at all times for) all of the organizational and basic decisions about establishing and forming your entity, operating your business, and hiring employees and employment matters employment, engaging professional advisors, and all other facets of your operation.
27.5. General Release. If this Agreement is not the first contract between you (and your affiliates) and us (and our affiliates), then you agree to the following:
You (on behalf of yourself and your parent, subsidiaries and affiliates and their respective past and present members, managers, shareholders, officers, directors, shareholders, agents and employees, in their corporate and individual capacities) and all guarantors of your obligations under this Agreement (collectively, "Releasors") freely and without any influence forever release and covenant not to sue us, our parent, subsidiaries and affiliates and their respective past and present officers, shareholders, members, managers, directors, shareholders, agents and employees, in their corporate and individual capacities (collectively "Releasees"), with respect to any and all claims, demands, liabilities and causes of action of whatever kind or nature, whether known or unknown, vested or contingent, suspected or unsuspected (collectively, "claims"), which any Releasor now owns or holds or may at any time have owned or held, including, without limitation, claims arising under federal, state and local laws, rules and ordinances and claims arising out of, or relating to this Agreement and all other agreements between any Releasor and any Releasee, the sale of any franchise to any Releasor, the development and operation of the Franchised Business and the development and operation of all other Businesses operated by any Releasor that are franchised by any Releasee.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids's 2025 Franchise Disclosure Document, the franchise agreement includes a general release that releases a wide range of claims. Specifically, if the agreement is not the first contract between the franchisee and Engineering For Kids, the franchisee agrees to release Engineering For Kids from all claims, demands, liabilities, and causes of action, whether known or unknown, vested or contingent. This release extends to the franchisee, their parent company, subsidiaries, affiliates, and their respective personnel, as well as any guarantors.
The scope of the release covers claims arising under federal, state, and local laws, rules, and ordinances, as well as claims related to the franchise agreement, other agreements between the parties, the sale of the franchise, and the operation of the franchised business. However, this general release does not apply to claims arising from representations made in Engineering For Kids's Franchise Disclosure Document and its exhibits, nor does it impair claims arising after the date of the agreement.
In the context of renewing the franchise agreement, Engineering For Kids also requires franchisees and owners to sign and deliver a general release of any and all claims against them, their affiliates, and their past, present, and future officers, directors, members, managers, shareholders, and employees as a condition of renewal. This is in addition to meeting other requirements such as paying all outstanding amounts, complying with all agreements, making necessary capital expenditures, paying a successor franchise fee of $3,500, and completing any required training courses.
It is important for a prospective Engineering For Kids franchisee to carefully review the general release and understand its implications, particularly regarding claims they may have against the franchisor. Franchisees should consult with a legal professional to fully understand the scope and impact of the release before signing the franchise agreement or any renewal agreements.