What is the effect of a franchisee signing a general release when renewing or transferring their Amorino franchise in California?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
You must sign a general release if you renew or transfer your franchise.
California Corporations Code 31512 voids a waiver of your rights under the Franchise Investment Law (California Corporations Code 31000 through 31516).
Business and Professions Code 20010 voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code 20000 through 20043.
Section 31512.1 of the California Corporations Code voids any disclaimer or denial of any of the following: (a) representations made by the franchisor or its personnel or agents to a prospective franchisee; (b) reliance by a franchisee on any representations made by the franchisor or its personnel or agents; (c) reliance by a franchisee on the franchise disclosure document including any exhibit thereto; and (d) violations of any provision of this division.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor.
This provision supersedes any other term of any document executed in connection with the franchise.
Exhibit E to the FDD (Representations and Acknowledgement Statement) is deleted.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, if a franchisee in California renews or transfers their franchise, they must sign a general release. This release involves waiving certain rights, but California law provides some protections. Specifically, California Corporations Code 31512 states that a franchisee cannot waive their rights under the Franchise Investment Law (California Corporations Code 31000 through 31516), and Business and Professions Code 20010 prevents waiving rights under the Franchise Relations Act (Business and Professions Code 20000 through 20043).
Additionally, Section 31512.1 of the California Corporations Code ensures that franchisees cannot disclaim reliance on representations made by Amorino or its agents, the franchise disclosure document, or any violations of the relevant division. This means that any statements, questionnaires, or acknowledgments signed by a franchisee cannot waive claims under state franchise law, including fraud, or disclaim reliance on statements made by Amorino or its representatives. The FDD explicitly states that Exhibit E, the Representations and Acknowledgement Statement, is deleted, reinforcing this protection.
In practical terms, while Amorino requires a general release upon renewal or transfer, California law provides franchisees with safeguards against unknowingly waiving their rights under franchise laws or disclaiming reliance on information provided by the franchisor. Prospective franchisees should consult with legal counsel to fully understand the implications of signing a general release and how California law protects their interests in the franchise relationship.