Does the Learningrx General Release apply to claims existing prior to the Effective Date?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
HEREFORE, in consideration of the covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the undersigned Franchisee agrees and covenants as follows:
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- The undersigned Franchisee and its shareholders, officers, and directors (collectively "Releasor") does hereby release and forever discharge Franchisor, its successors, agents, assigns, officers, directors, shareholders, employees, representatives, and any and all other persons, firms and corporations whatsoever (collectively "Releasees"), from any and all claims, demands, damages, actions, causes of action, or suits of any kind or nature whatsoever, both known and unknown, breach of contract, defamation, and any claims whatsoever which the Releasor ever had, now has or hereinafter can, will or may have, for on or by reason of any matter, cause or thing whatsoever, through the Effective Date. This Full, Final and Absolute Release (the "Release") shall apply to all agreements or contracts heretofore existing or entered into by and between the undersigned Franchisee and Franchisor prior to or as of the Effective Date.
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Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, the General Release does apply to claims existing prior to the Effective Date. The document specifies that the franchisee releases Learningrx from any and all claims, both known and unknown, that the franchisee ever had, now has, or may have through the Effective Date. This includes any claims related to agreements or contracts existing before or as of the Effective Date.
This means that by signing the General Release, a Learningrx franchisee waives their right to pursue any legal claims against Learningrx that existed up to the date the release is signed. This could include disputes over past performance, disagreements about contract terms, or any other grievances. The release explicitly covers a broad range of claims, including breach of contract and defamation.
However, there are some limitations to the General Release. It does not apply to any liability under the Maryland Franchise Registration and Disclosure Law, or with respect to claims arising under the Washington Franchise Investment Protection Act. Therefore, franchisees in Maryland and Washington retain certain rights to pursue claims against Learningrx under those specific state laws, notwithstanding the General Release. Prospective franchisees should carefully consider the implications of this release and consult with an attorney to understand their rights and obligations before signing.