What claims are excluded from the general release required for renewal or transfer of a 360 Painting franchise?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
elevant time. References to a governmental agency also refer to any regulatory body that succeeds the function of such agency.
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- Sections 3.2(ix) and 17.4(iii) of the Franchise Agreement each contain a provision requiring a general release as a condition of renewal or transfer of the franchise. Such release will exclude claims arising under the General Business Law of New York State, Article 33, Sections 680 through 695, and the regulations issued thereunder.
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- No representation or acknowledgment by the Franchisee in the Franchise Agreement is intended to or shall act as a release, assignment, novation, waiver or estoppel which would relieve a person from any duty or liability imposed by Article 33, Sections 680 through 695, of the General Business Law of the State of New York and the regulations issued thereunder.
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Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to the 2025 FDD, the specific claims excluded from the general release required for renewal or transfer of a 360 Painting franchise depend on the state in which the franchisee operates.
For franchisees in New York, the general release will exclude claims arising under the General Business Law of New York State, Article 33, Sections 680 through 695, and the regulations issued thereunder. Similarly, for franchisees in Indiana, the general release does not apply to the extent it is inconsistent with the Indiana Deceptive Franchise Practices Law.
For franchisees in Maryland, the general release required as a condition of renewal, sale, and/or assignment/transfer will not apply to any liability under the Maryland Franchise Registration and Disclosure Law. In Minnesota, the franchisor is prohibited from requiring a franchisee to assent to a general release, assignment, novation, or waiver that would relieve any person from liability imposed by Minnesota Statute §§80C.01 – 80C.22. These state-specific addenda modify the standard franchise agreement to comply with local laws, ensuring that franchisees do not unknowingly waive rights granted to them under state franchise laws.