Does the Learningrx General Release cover unknown claims?
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:
-
- 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 cover both known and unknown claims. The document states that the franchisee releases Learningrx from "any and all claims, demands, damages, actions, causes of action, or suits of any kind or nature whatsoever, both known and unknown...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 means that by signing the General Release, a Learningrx franchisee is waiving their rights to sue Learningrx for any claims they may have, whether they are aware of those claims or not at the time of signing. This release extends to a wide range of potential issues, including breach of contract and defamation, through the effective date of the release. This is a significant commitment, as it limits the franchisee's future legal recourse against Learningrx.
However, there are some limitations to the general release. Specifically, the release 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, RCW 19.100, and the rules adopted thereunder. Therefore, franchisees in Maryland and Washington retain certain rights and protections under those state-specific franchise laws, despite signing the General Release. Prospective franchisees should carefully consider the implications of this release and consult with an attorney to fully understand their rights and obligations.