Does the Fly To Fit release agreement cover claims that are known or unknown?
Fly_To_Fit 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 Fly To Fit Franchise, 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 44–134)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the general release agreement covers both known and unknown claims. The release agreement requires the franchisee to release Fly To Fit 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. This release extends to claims that the franchisee or its affiliates have or ever had against Fly To Fit Franchise.
This means that by signing the release, a Fly To Fit franchisee is giving up their right to sue Fly To Fit for any reason, even if they are not aware of the reason at the time of signing. This could include claims that arise in the future based on events that have already occurred. The franchisee also agrees not to initiate any legal proceedings against Fly To Fit regarding any claim.
However, it's important to note that certain states, such as Maryland, North Dakota, Illinois, New York and Washington, have specific regulations that may limit the enforceability of such releases. For example, Maryland law stipulates that releases cannot act as a waiver of liability under the Maryland Franchise Law. Similarly, North Dakota does not require franchisees to sign a general release upon renewal of the agreement. Franchisees in these states should be aware of their rights and consult with legal counsel to understand the implications of signing a release. In Washington, 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.