Does the release in the Eos Worldwide Franchise Agreement extend to unknown claims?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
"GENERAL RELEASE; EXTENT. A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR."
- (5) For Washington Residents Only The General Release does not apply with respect to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and the rule adopted thereunder.
- (6) Releasor hereby understands and agrees that this Release supersedes any prior agreement, oral or written, with respect to its subject matter. Releasor further understands and agrees that no representations, warranties, agreements or covenants have been made with respect to this Release, other than those set forth in this Release, and that in executing this Release, Releasor is not relying upon any representations, warranties, agreements or covenants not set forth in this Release.
- (7) Releasor covenants not to sue or to assert, prosecute or maintain, directly or indirectly, in any form, any claim or cause of action against any Released Party with respect to any matter, cause, omission, act, or thing whatsoever, occurring in whole or in part on or at any time prior to the date of this Release, and which is subject to such release provided for in this Release.
- (8) Releasor represents and warrants that Releasor has not filed nor made any claims, charges, complaints, or actions of any type, whether legal, equitable, or administrative, against any Released Party.
This Release and all acts and transactions under it shall in all respects be interpreted, enforced and governed by the internal laws of the State of Delaware.
If the releases provided herein are inconsistent with applicable law, including, as provided in the Multi-State Addenda set forth in Exhibit B of the Franchise Agreement, then you agree to execute a release of comparable scope that is legal and enforceable.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, the general release includes a statement about unknown claims. Specifically, it states that a general release does not extend to claims which the creditor does not know or suspect to exist at the time of executing the release, and which, if known, would have materially affected the settlement with the debtor. This means that if an Eos Worldwide franchisee signs a general release, they are not releasing claims that they are unaware of at the time of signing, provided that knowledge of such claims would have significantly impacted their decision to settle.
For residents of Washington state, the general release does not apply to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and its associated rules. This provides additional protection for Eos Worldwide franchisees in Washington, ensuring their rights under state franchise law are not waived by the general release. The release also specifies that it supersedes any prior agreements and that the releasor is not relying on any representations, warranties, agreements, or covenants not explicitly stated in the release.
The Eos Worldwide franchisee also covenants not to sue or assert any claims against any released party for any matter occurring before the date of the release. The franchisee represents and warrants that they have not filed any claims against any released party. The release is governed by the laws of Delaware. If any part of the release is inconsistent with applicable law, including the Multi-State Addenda, the franchisee agrees to execute a release of comparable scope that is legal and enforceable. This ensures that the release remains effective and compliant with relevant legal requirements, offering a degree of flexibility while protecting the interests of both parties.