Does the release in the Pearce Bespoke agreement cover claims that are unknown or unsuspected?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Releasor and its subsidiaries, affiliates, parents, divisions, successors and assigns, and all persons or firms claiming by, through, under, or on behalf of any or all of them, hereby release, acquit, and forever discharge Franchisor, any and all of its affiliates, parents, subsidiaries, or related companies, divisions, and partnerships, and its and their past and present officers, directors, agents, partners, shareholders, employees, representatives, successors and assigns, and attorneys, and the spouses of such individuals (collectively, the "Released Parties"), from any and all claims, liabilities, damages, expenses, actions, or causes of action which Releasor may now have or has ever had, whether known or unknown, past or present, absolute or contingent, suspected or unsuspected, of any nature whatsoever, including without limiting the generality of the foregoing, all claims, liabilities, damages, expenses, actions, or causes of action directly or indirectly arising out of or relating to the execution and performance of the Agreement and the
offer and sale of the franchise related thereto, except to the extent such liabilities are payable by the applicable indemnified party in connection with a third party claim.
Source: Item 23 — RECEIPTS (FDD pages 39–172)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the general release of claims does cover both known and unknown claims. As stated in the document, the release extends to all claims, liabilities, damages, expenses, actions, or causes of action that the Releasor (which includes the franchisee) may have, whether known or unknown, past or present, absolute or contingent, suspected or unsuspected. This broad release aims to protect Pearce Bespoke from a wide range of potential future claims.
This means that by signing the release, a Pearce Bespoke franchisee is giving up the right to sue Pearce Bespoke for any issue, even if the franchisee is not currently aware of the issue or its potential impact. The release covers any and all claims, known or unknown, that the franchisee may have against Pearce Bespoke and its affiliates. This includes claims related to the franchise agreement, the offer and sale of the franchise, or any other aspect of the franchise relationship.
However, the General Release of Claims will not apply to claims arising under the Franchise Investment Protection Act, Chapter 19.100 RCW, or the rules adopted thereunder. Franchisees should carefully consider the implications of this broad release and consult with an attorney before signing it. It is important to understand what rights are being waived and whether the release is appropriate in the specific circumstances, such as a franchise renewal or sale.