When is a release or waiver of rights in the Body20 franchise agreement considered void?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
The Development Agreement and Franchise Agreement require you to sign a general release of claims upon renewal of the Franchise Agreement or transfer of the Development Agreement or Franchise Agreement. California Corporations Code Section 31512 provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of that law or any rule or order
thereunder is void. Section 31512 might void a waiver of your rights under the Franchise Investment Law (California Corporations Code Section 31000 – 31516). Business and Professions Code Section 20010 might void a waiver of your rights under the Franchise Relations Act (Business and Professions Code Sections 20000 – 20043).
No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on behalf of us. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, certain conditions, stipulations, or provisions that attempt to waive compliance with franchise laws may be deemed void. Specifically, in California, Section 31512 of the California Corporations Code might void a waiver of rights under the Franchise Investment Law (California Corporations Code Section 31000 – 31516), and Business and Professions Code Section 20010 might void a waiver of rights under the Franchise Relations Act (Business and Professions Code Sections 20000 – 20043). Additionally, any statement, questionnaire, or acknowledgement signed in connection with starting the franchise relationship cannot waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Body20 or its representatives.
In Illinois, Section 41 of the Illinois Franchise Disclosure Act states that any condition, stipulation, or provision that binds someone acquiring a franchise to waive compliance with the Act or any other Illinois law is void. However, this does not prevent settlement agreements or general releases regarding potential lawsuits, nor does it prevent arbitration under Title 9 of the United States Code. Furthermore, any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may still occur outside of Illinois.
For franchisees in Maryland, the general release required for renewal, sale, or transfer will not apply to any liability arising under the Maryland Franchise Registration and Disclosure Law. Similarly, Maryland law will apply to claims arising under the Maryland Franchise Registration and Disclosure Law, and any limitation of claims will not reduce the three-year statute of limitations for bringing a claim under that law. In Washington, in the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW will prevail. In New York, all rights enjoyed by you and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force to the extent required by the non-waiver provisions of GBL Sections 687.4 and 687.5, as amended.