Does the general release for Precision Door Service extend to unknown claims?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
The release of the Claims as set forth above is intended by the Releasor to be full and unconditional general releases, as that phrase is used and commonly interpreted, extending to all claims of any nature, whether or not known, expected or anticipated to exist in favor of the Releasees regardless of whether any unknown, unsuspected or unanticipated claim would materially affect settlement and compromise of any matter mentioned herein. In making this voluntary express waiver, the Releasor acknowledges that claims or facts in addition to or different from those which are now known to exist with respect to the matters mentioned herein may later be discovered and that it is the Releasor's intention to hereby fully and forever settle and release any and all matters, regardless of the possibility of later discovered claims or facts. The Releasor acknowledges that Releasor has had adequate opportunity to gather all information necessary to enter into this Release and to grant the releases contained herein, and needs no further information or knowledge of any kind that would otherwise influence the decision to enter into this Release. The Releasor, for itself and its heirs, successors and assigns, hereby expressly, voluntarily, and knowingly waives, relinquishes and abandons each and every right, protection, and benefit to which they would be entitled, now or at any time hereafter under Section 1542 of the Civil Code of the State of California, as well as under any other statutes or common law principles of similar effect to said Section 1542, whether now or hereafter existing under the laws of California or any other applicable federal or state law with jurisdiction over the parties' relationship. The Releasor acknowledges that Section 1542 of the Civil Code of the State of California provides as follows:
"A general release does not extend to claims which the creditor or releasing party does not know or suspect to exist in his favor at the time of
executing the release, which if known by him must have materially affected his settlement with the debtor or released party."
This Release is and shall be and remain a full, complete and unconditional general release.
Source: Item 23 — Receipts (FDD pages 92–433)
What This Means (2025 FDD)
According to the 2025 Precision Door Service Franchise Disclosure Document, the general release is intended to cover all claims, including those that are unknown at the time of the release. The release extends to all claims, regardless of whether they are known, expected, or anticipated. This means that even if a franchisee later discovers a claim that they were unaware of at the time of signing the release, the release is intended to cover it.
The FDD specifies that this release is meant to be a full and unconditional general release, as commonly interpreted. It explicitly states that the release applies even if unknown, unsuspected, or unanticipated claims would materially affect the settlement and compromise of any matter mentioned in the agreement. The franchisee acknowledges that they may later discover claims or facts different from those currently known but still intends to fully settle and release all matters.
Furthermore, the franchisee waives any rights, protections, and benefits they would be entitled to under Section 1542 of the Civil Code of the State of California, or any similar statutes or common law principles. This section typically protects a releasing party from unknowingly releasing claims they were unaware of at the time of signing the release. By waiving this protection, the franchisee agrees to release all claims, known or unknown.
This type of comprehensive release has significant implications for a prospective Precision Door Service franchisee. It means they are giving up the right to pursue any claims against the franchisor, even those they are not currently aware of. Franchisees should carefully consider this provision and seek legal counsel to fully understand the scope of the release before signing the franchise agreement.