Does the waiver of claims in the Batteries Plus Bulbs franchise agreement include claims for negligence?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
C. The Franchisee Parties specifically and expressly acknowledge and agree that the consideration accepted under this Agreement is accepted in full satisfaction of any and all injuries and/or damages that have previously arisen and which may hereafter arise respecting any of the claims being released. [California option: The Franchisee Parties expressly waive all rights or benefits that they have or may have under Section 1542 of the California Civil Code, which section provides: A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.]
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 49–53)
What This Means (2025 FDD)
Based on the 2025 Batteries Plus Bulbs Franchise Disclosure Document, the information provided does not explicitly state whether the waiver of claims includes claims for negligence. However, for franchisees in Minnesota, the FDD includes an addendum that impacts waivers. Specifically, no statement signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor. This provision overrides any other conflicting terms in the franchise agreement. This suggests that while general waivers may exist, they are limited by Minnesota law.
For franchisees in California, the Franchisee Parties expressly waive all rights or benefits that they have or may have under Section 1542 of the California Civil Code, which section provides: A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.
To fully understand the scope of the waiver and its implications, especially regarding negligence claims, a prospective franchisee should consult with a legal professional. It is important to determine whether such claims are explicitly included or excluded in the franchise agreement and how state laws might affect the enforceability of the waiver.