Does the Bor Restoration franchise agreement include a General Release exhibit?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
ts:
Exhibit B Franchise Agreement and all Exhibits to Franchise Agreement as follows:
| Exhibit 1 | Initial Franchise Fee and Statement of Ownership |
|---|---|
| Exhibit 2 | Exclusive Territory and Franchised Location |
| Exhibit 3 | Release for Criminal and Credit Check |
| Exhibit 4 | General Release |
| Exhibit 5 | Collateral Assignment of Contact and Electronic Information |
| Exhibit 6 | Confidentiality Agreement |
| Exhibit 7 | State Addenda |
| Exhibit 8 | Guaranty |
| Exhibit 9 | Closing Acknowledgement |
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee 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 any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — Contracts (FDD page 40)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the franchise agreement includes a General Release exhibit. Specifically, Exhibit 4 to the franchise agreement is a General Release. This means that as part of the franchising process, Bor Restoration requires franchisees to sign a document releasing the company from certain liabilities or claims.
The inclusion of a General Release is a common practice in franchising. It is designed to protect Bor Restoration from potential lawsuits or disputes arising from the franchisee's operation of the business. However, the FDD also states that no agreement signed by a franchisee can waive claims under state franchise law, including fraud, or disclaim reliance on statements made by the franchisor. This provision takes precedence over any other conflicting terms in any document executed in connection with the franchise.
Prospective Bor Restoration franchisees should carefully review the General Release with legal counsel to understand the scope of the release and its implications for their rights and responsibilities. While the release aims to protect Bor Restoration, the FDD clarifies that it cannot override state franchise laws or disclaim reliance on the franchisor's statements, offering some protection to the franchisee.