Is a general release required when renewing or transferring a Bananas Smoothies Frozen Yogurt franchise?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
ode requires us to give you a disclosure document, in a form containing the information that the commissioner may by rule or order require, before a solicitation of a proposed material modification of an existing franchise.
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- You must sign a general release if you renew or transfer your franchise. California Corporations Code §31512 voids a waiver of your rights under the Franchise Investment Law (California Corporations Code §$31000 through 31516). Business and Professions Code §20010 voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code §$20000 through 20043).
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Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, whether a general release is required upon renewal or transfer of a franchise depends on the state. In California, a franchisee must sign a general release when renewing or transferring their franchise. However, California Corporations Code §31512 voids any waiver of rights under the Franchise Investment Law, and Business and Professions Code §20010 voids any waiver of rights under the Franchise Relations Act.
In Maryland, the general release required as a condition of purchase, renewal, or transfer does not apply to any liability under the Maryland Franchise Registration and Disclosure Law, according to COMAR 02.02.08.16L.
In Minnesota, Minn. Rule 2860.4400D explicitly prohibits Bananas Smoothies Frozen Yogurt from requiring a franchisee to sign a general release. Therefore, prospective franchisees should be aware of the specific regulations in their state regarding general releases and waivers of rights when considering renewal or transfer of their Bananas Smoothies Frozen Yogurt franchise.