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What does the All States M.E.D. franchise agreement say about waiving rights under California Civil Code §1542?

Q: What does the All States M.E.D. franchise agreement say about waiving rights under California Civil Code §1542?

- 5. California Releasor- You represent and warrant that YOU EXPRESSLY WAIVE ANY AND ALL RIGHTS AND BENEFITS UNDER CALIFORNIA CIVIL CODE §1542, which provides as follows: A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor. 6. The above Release shall not apply to any liabilities arising under the California Franchise Investment Law, the California Franchise Relations Act, Indiana Code § 23-2-2.5.1 through 23-2-2.7-7, the Maryland Franchise Registration and Disclosure Law, Michigan Source: Item 23 — RECEIPTS (FDD pages 44–174)

All_States_M_E_D Franchise · 2024 FDD

Answer from 2024 FDD Document

1. California Releasor- You represent and warrant that YOU EXPRESSLY WAIVE ANY AND ALL RIGHTS AND BENEFITS UNDER CALIFORNIA CIVIL CODE §1542, which provides as follows:

A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.

The above Release shall not apply to any liabilities arising under the California Franchise Investment Law, the California Franchise Relations Act, Indiana Code § 23-2-2.5.1 through 23-2-2.7-7, the Maryland Franchise Registration and Disclosure Law, Michigan

Source: Item 23 — RECEIPTS (FDD pages 44–174)

What This Means (2024 FDD)

According to the 2024 All States M.E.D. Franchise Disclosure Document, the franchise agreement includes a specific release where a franchisee in California expressly waives any and all rights and benefits under California Civil Code §1542. This code states that a general release does not apply to claims that the creditor is unaware of at the time of executing the release, which, if known, would have significantly affected the settlement with the debtor.

Specifically, the All States M.E.D. franchise agreement states that the franchisee represents and warrants that they are giving up all rights related to the transactions or occurrences being released under the agreement. However, this waiver does not extend to liabilities arising under the California Franchise Investment Law, the California Franchise Relations Act, and other state franchise laws listed in the FDD.

In practical terms, this means that as an All States M.E.D. franchisee, you are agreeing to give up your right to make claims related to issues you are not even aware of when signing the release. However, the agreement also protects your rights under California's franchise laws, ensuring that you do not waive those specific legal protections. It is important for a prospective franchisee to fully understand the implications of waiving rights under California Civil Code §1542 and to seek legal counsel to assess the risks and benefits before signing the franchise agreement.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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