What is being waived by the Apricot Lane franchisee and owner with respect to Civil Code Section 1542?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
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. 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, the franchisee and owner are waiving rights and benefits available under Section 1542 of the California Civil Code or any similar law in another state regarding the survival of claims after a general release. This means they are relinquishing the right to pursue claims that they don't know about when signing the release, which, if known, would have significantly affected their settlement with Apricot Lane.
The specific text of Civil Code Section 1542, as quoted in the FDD, states that "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." Apricot Lane requires that franchisees and owners understand this language and still choose to waive these rights, releasing the franchisor from all claims, whether known or unknown.
This waiver means that even if the franchisee or owner later discovers new facts or different information than what they initially believed, the release remains effective. They are accepting the risk of possible different or additional facts. The document emphasizes that the decision to make this release is not based on any factual representations made by Apricot Lane regarding the nature of the claims being released or any other matters. However, this release does not apply to claims arising under specific franchise laws in Maryland, New York, or Washington, nor does it limit liabilities imposed by Minnesota Statutes sections 80C.01 or 80C.22.