Are unknown claims released in the general release provided by Apricot Lane?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
ircumstance, act or omission, whether known or unknown, fixed or contingent, which the Franchisee Parties or any of them have against the Franchisor Parties by reason of any matter, event or cause whatsoever occurring or arising at any time prior to and including the Effective Date of this Release stated above. Franchisee and Owner, for themselves and on behalf of the other Franchisee Parties, further covenant not to sue any of the Franchisor Parties on any of the Claims released by this paragraph and represent that Franchisee and Owner have not assigned any of the Claims released by this paragraph to any individual or entity who is not bound by this paragraph.
- 2. Waiver of Civil Code Section 1542. Franchisee and Owner for themselves and for each of the Franchisee Parties acknowledge a familiarity with Section 1542 of the Civil Code of the State of
California and hereby expressly waive and relinquish any rights or benefits available under the provisions of Section 1542 of the California Civil Code or any similar law of any state that provides for the survival of claims notwithstanding a general release. Civil Code Section 1542 provides as follows:
A general release does not extend to claims that 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.
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.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the general release includes a waiver of claims, whether known or unknown. Specifically, the franchisee and owner acknowledge that they are familiar with Section 1542 of the Civil Code of California, which states that a general release does not extend to claims that the creditor does not know or suspect to exist at the time of executing the release.
Despite this, the franchisee and owner elect to waive these rights and release Apricot Lane from all claims, whether known or unknown. They also accept the risk that the facts relied upon in making the release may be different from what is believed to be true or that additional facts may be discovered. The franchisee and owner agree that the release and waiver will remain effective even if such different or additional facts are discovered.
However, there are limitations to this release. It expressly excludes claims arising under the Maryland Franchise Registration and Disclosure Law, Article 33 of the General Business Law of the State of New York, and the Washington Franchise Investment Protection Act, RCW 19.100, including the rules adopted under these acts. Additionally, the release does not limit or relieve any person from liability imposed by Minnesota Statutes, sections 80C.01 or 80C.22.