What risk does the Apricot Lane franchisee expressly accept regarding different or additional facts discovered after making the release?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee and Owner understand this statutory language, and notwithstanding this or any similar statute, Franchisee and Owner freely elect to specifically waive these rights and hereby do release the Franchisor Parties from all claims whether known or unknown. Franchisee and Owner understand that if the facts relied upon in making this Release are discovered hereafter to be other than or different from the facts now believed to be true, or if additional facts are discovered, Franchisee and Owner expressly accept the risk of such possible different or additional facts and agrees that this Release and waiver shall remain effective notwithstanding any such discoveries. Franchisee and Owner are not deciding to make this Release predicated on any factual representations of Franchisor regarding the nature of the claims released or any other matters.
3. Limitations on Release.
This release expressly excludes, as applicable, any claims arising under the Maryland Franchise Registration and Disclosure Law or under Article 33 of the General Business Law of the State of New York or under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder, and will not operate to limit or relieve any person from any liability imposed by Minnesota Statutes, sections 80C.01 or 80C.22.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane FDD, franchisees acknowledge and accept the risk that facts they relied upon when making a release may later be found to be different or that additional facts may be discovered. Despite this possibility, the franchisee agrees that the release and waiver will remain effective, regardless of any such discoveries. This means that even if a franchisee later finds out that the information they had at the time of signing the release was inaccurate or incomplete, they are still bound by the terms of the release.
This clause emphasizes that the franchisee is making the release based on their own assessment and not on any factual representations made by Apricot Lane. The franchisee is responsible for conducting their own due diligence and understanding the implications of the release. This section does not apply to claims arising under the franchise laws of Maryland, New York, or Washington, or to limit liability under Minnesota Statutes sections 80C.01 or 80C.22.
In essence, Apricot Lane franchisees are waiving their rights to make future claims even if new information comes to light that could have changed their decision to sign the release. This is a significant risk for the franchisee, as it limits their ability to seek recourse if they later discover they were disadvantaged by unknown or different facts at the time of the release. Prospective franchisees should carefully consider this provision and seek legal counsel to fully understand its implications before signing the Franchise Agreement.