What is the effect of the General Release on future claims against Focus Cfo?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW THEREFORE, in consideration of the mutual covenant herein contained, the parties covenant and agree as follows:
Franchisee and its directors, officers, employees, subsidiaries, affiliates, agents, representatives, shareholders, successors and assigns (the "Franchisee Releasing Parties"), hereby release, remise and forever discharge Focus CFO and its directors, officers, employees, subsidiaries, affiliates, agents, representatives, shareholders, successors and assigns (the "Focus CFO Released Parties"), from any and all claims, damages, losses, injuries, suits, debts, liabilities, sums of money, accounts, covenants, controversies, demands, actions, rights and causes of action of whatever kind or nature, at law or in equity, known or unknown, asserted or unasserted, suspected or unsuspected, foreseen or unforeseen, anticipated or unanticipated, accrued or unaccrued, made, brought, or which could have been made or brought, that the Franchisee Releasing Parties may have had or may presently have, against the Focus CFO Released Parties solely in connection with or pertaining to the Franchise Agreement, the business operated under the Franchise Agreement, and/or any other agreement between the Franchisee Releasing Parties and the Focus CFO Released Parties. The Franchisee Releasing Parties also covenant not to sue or otherwise bring a claim against the Focus CFO Released Parties regarding any of the claims being released under this Release. The Franchisee Releasing Parties hereby acknowledge that this release is intended to be a full and unconditional release, as that phrase is used and commonly interpreted, extending to all claims of any nature, whether or not known, expected or anticipated to exist.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, the General Release has a significant impact on a franchisee's ability to bring future claims against Focus Cfo. By signing the release, the franchisee (along with their directors, officers, employees, subsidiaries, affiliates, agents, representatives, shareholders, successors, and assigns) releases Focus Cfo (and its directors, officers, employees, subsidiaries, affiliates, agents, representatives, shareholders, successors, and assigns) from virtually any and all claims, damages, losses, or liabilities related to the Franchise Agreement, the business operated under it, or any other agreement between the parties. This release covers all types of claims, whether known or unknown, asserted or unasserted, suspected or unsuspected, foreseen or unforeseen, and accrued or unaccrued.
This means that once the release is signed, the franchisee gives up the right to sue Focus Cfo for any of the covered claims. The franchisee also agrees not to bring any claim against Focus Cfo regarding the released claims. The document explicitly states that the release is intended to be a full and unconditional one, extending to all claims of any nature, whether or not known, expected, or anticipated to exist.
However, it's important to note that in Maryland, the terms of the release may be limited. According to the addendum in the FDD, any general release required as a condition of renewal, sale, assignment, or transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This suggests that while the general release is broad, it may not cover liabilities arising specifically under Maryland's franchise laws for franchisees operating in Maryland.