What California Civil Code section is referenced in the Annex Brands General Release?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
YOU ACKNOWLEDGE THAT YOU ARE FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 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 FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR."
YOU, BEING AWARE OF THIS CODE SECTION, HEREBY EXPRESSLY WAIVE ALL OF YOUR RIGHTS THEREUNDER AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT OF ANY APPLICABLE JURISDICTION, INCLUDING, WITHOUT LIMITATION, CALIFORNIA AND/OR
Source: Item 23 — Receipts (FDD pages 110–299)
What This Means (2025 FDD)
According to the 2025 FDD, Annex Brands' General Release references California Civil Code Section 1542. The release includes an acknowledgement that the franchisee is familiar with this section of the code.
California Civil Code Section 1542 states that a general release does not apply to claims that the creditor is unaware of at the time of executing the release, and which, if known, would have significantly impacted the settlement with the debtor. By signing the release, the franchisee expressly waives all rights under this code section, as well as any other similar statutes or common law principles in any applicable jurisdiction, including California.
This waiver means that franchisees are giving up their right to pursue claims against Annex Brands, even if they later discover new information or facts that were previously unknown. The franchisee assumes the risk of any mistakes of fact and confirms that they have conducted their own independent investigation and have not relied on any statements or promises not explicitly outlined in the release. This is a significant legal consideration for prospective franchisees.