Are there any exceptions to the release and covenant not to sue provided by the Apricot Lane franchisee and owner?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Franchise Disclosure Document, there are specific limitations to the release provided by the franchisee and owner. The release does not apply to claims arising under the Maryland Franchise Registration and Disclosure Law, Article 33 of the General Business Law of the State of New York, or the Washington Franchise Investment Protection Act, RCW 19.100, including the rules adopted under these acts. Additionally, the release will not limit or relieve any person from liability imposed by Minnesota Statutes, sections 80C.01 or 80C.22.
Furthermore, the FDD highlights the franchisee and owner's express waiver of rights under California Civil Code Section 1542 or any similar law. This section typically protects a party from releasing claims they are unaware of at the time of signing the release. However, Apricot Lane's franchise agreement stipulates that franchisees and owners specifically waive these protections, accepting the risk that facts may be different or additional facts may be discovered after the release is executed. This means that even if new information comes to light, the release remains effective.
In practical terms, this means that while franchisees generally release Apricot Lane from most claims, certain statutory rights under specific state franchise laws are preserved. However, franchisees are giving up their right to pursue claims based on facts they don't know about when signing the agreement. Prospective franchisees should carefully consider the implications of waiving these rights and consult with legal counsel to fully understand the scope and limitations of the release.