What sections of the 360 Painting Franchise Agreement contain provisions requiring a general release as a condition of renewal or transfer of the 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, Sections 3.2(ix) and 17.4(iii) of the 360 Painting Franchise Agreement contain provisions that require a general release as a condition of renewal or transfer of the franchise. However, for franchisees in New York, 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.
For Indiana franchisees, Sections 3.2(viii) and 17.4(iii) of the Franchise Agreement each contain a provision requiring a general release as a condition to renewal or transfer of the franchise. However, each provision is inapplicable to the extent inconsistent with the Indiana Deceptive Franchise Practices Law, IC § 23-2-2.7-1(5).
For Maryland franchisees, 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. It is important for prospective franchisees to understand the implications of these general release requirements, especially concerning their rights and potential liabilities upon renewal or transfer. Franchisees should consult with a legal professional to fully understand the scope and impact of these provisions in their specific state.