Does the 360 Painting General Release survive the assignment or termination of franchise agreements?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
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Each paragraph, provision and term of this Agreement shall be considered severable, and if any paragraph, provision or term herein is ruled to be unenforceable, unreasonable or invalid, such ruling shall not impair the operation of or affect the remaining portions, paragraphs, parts, terms and provisions of this Agreement, and the latter shall continue to be given full force and effect and bind the parties; and such unenforceable, unreasonable or invalid paragraphs, parts, terms or provisions shall be deemed not part of this Agreement.
[signatures on following page]
| IN WITNESS WHEREOF, each of the undersigned has affixed its signature on | |
|---|---|
| GUARANTORS: | |
| Agreed: | [Name of Guarantor] |
| FRANCHISOR: | |
| 360 PAINTING, LLC | (SEAL) Signature |
| By: | Address: |
| Name: Paul Flick | |
| Its: | |
| CEO | Social Security No.: [Name of Guarantor] (SEAL) Signature Address: |
| Social Security No.: |
TO FRANCHISE AGREEMENT
GENERAL RELEASE
| This General Release is made effective this | . In consideration for the grant by |
|---|---|
| 360 Painting, LLC, a Delaware limited liability company, to the undersigned of certain rights in connection | |
| with the operation of a 360 Painting Business and/or the transfer, termination or renewal thereof, and for | |
| other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the | |
| undersigned, individually and collectively, hereby unconditionally release, discharge, and acquit | |
| Franchisor, its past and present subsidiaries and affiliates, and its and their shareholders, owners, directors, | |
| officers, managers, members, partners, employees, agents, representatives, successors and assigns, from | |
| any and all liabilities, damages, claims, demands, costs, expenses, debts, indemnities, suits, disputes, | |
| controversies, actions and causes of action of any kind whatsoever, whether known or unknown, fixed or | |
| contingent, regarding or arising out of any | prior or existing franchise relationship, development agreement, |
| franchise agreement or any other agreement executed by any of the undersigned and 360 Painting, LLC (or | |
| any subsidiary or affiliate of 360 Painting, LLC), any 360 Painting Business (whether currently or | |
| previously owned or operated by the undersigned or any of them), or any other prior or existing business | |
| relationship between any of the undersigned and 360 Painting, LLC (or any subsidiary or affiliate of 360 | |
| Painting, LLC), which the undersigned or any of them individually or collectively has asserted, may have | |
| asserted or could have asserted against 360 Painting, LLC (or any of the aforementioned related parties) at | |
| any time up to the date of this General Release, including specifically, without limitation, claims arising |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, the General Release associated with a 360 Painting franchise agreement explicitly survives both the assignment and termination of the franchise agreement. This means that even if the franchise agreement is assigned to another party or terminated, the terms of the General Release remain in effect.
The General Release involves the franchisee releasing 360 Painting from various liabilities, damages, claims, and demands related to the franchise. This release covers a wide range of potential issues, including those arising from the franchise relationship, any agreements, or any business relationship between the franchisee and 360 Painting. It extends to claims that the franchisee has asserted, may have asserted, or could have asserted against 360 Painting.
However, the General Release does not act as a waiver of rights that cannot be waived under applicable state franchise laws. The General Release is governed by the laws of the state where 360 Painting maintains its principal place of business at the time any dispute resolution proceeding is initiated. This ensures that the release is interpreted and enforced in accordance with the relevant legal framework, while also protecting the franchisee's unwaivable rights under state law.