Does the Learningrx General Release cover claims against employees of the Learningrx franchisor?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, the General Release does include employees of the franchisor among the parties being released from liability. The document states that the franchisee, along with its shareholders, officers, and directors, releases Learningrx, its successors, agents, assigns, officers, directors, shareholders, employees, and representatives from all claims and actions. This means a franchisee is agreeing to not sue Learningrx employees.
This release covers a broad range of potential claims, including those that are known and unknown, related to breach of contract or defamation. The release applies to all agreements existing between the franchisee and Learningrx up to the effective date of the release. The document emphasizes that this release is a compromise of all claims, past, present, or future, and that signing it does not constitute an admission of liability by any party.
The General Release specifies that the consideration mentioned within the document is the only consideration being paid for the release. It also states that no other promises or representations have been made to induce the release, other than what is expressly written in the document. The franchisee acknowledges that they have carefully read and understand the terms of the release, signing it as their own free act.
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 to claims arising under the Washington Franchise Investment Protection Act. Therefore, franchisees in those states retain certain rights and protections under those specific laws, despite signing the General Release.