Is the 1 800 Packouts General Release subject to termination if the facts change?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Risk of Changed Facts. Franchisee, Transferee, and Guarantors understand that the facts in respect of which the release in Section 1 is given may turn out to be different from the facts now known or believed by them to be true.
Franchisee, Transferee, and Guarantors hereby accept and assume the risk of the facts turning out to be different and agree that the release in Section 1 shall nevertheless be effective in all respects and not subject to termination or rescission by virtue of any such difference in facts.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, the General Release signed by the franchisee, transferee, and guarantors includes an acceptance of the risk that facts may change. The document specifies that the release remains effective even if the facts turn out to be different from what was originally known or believed.
This means that a franchisee agrees to assume the risk of any changes in circumstances or newly discovered information that might affect the claims released in the General Release. The franchisee acknowledges that they cannot terminate or rescind the release based on any differences in facts that may arise later.
However, the rider to the 1-800-Packouts Franchise Agreement specifies that for franchisees operating in Maryland, New York, and North Dakota, any general release signed as a condition to transfer or renewal will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law, the General Business Law of the State of New York, and the North Dakota Franchise Investment Law, respectively. Similarly, for franchisees operating in Minnesota, any release required as a condition of renewal and/or assignment/transfer will not apply to the extent prohibited by the Minnesota Franchises Law.