What does the Burneys Sweets More release state about the Franchisee's understanding of the document's contents?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
The terms contained herein may not be modified or amended except in writing signed by the parties.
The terms of this Release are contractual and not a mere recital.
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- The undersigned further state that they have carefully read the foregoing instrument; that they know the contents thereof; that they understand and agree to each and every term and condition contained herein; that they signed the same as their own free act and deed; and that they have not assigned any rights released hereunder to any person or organization, private or governmental.
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- Franchisee hereby covenants and agrees that it and Franchisee Parties shall not make, at any time or place, any disparaging remarks, verbally or in writing, concerning any of the Franchisor Parties' actions or perceived omissions, regarding any matter connected with this Release Agreement or otherwise take any action that would disparage or cast doubt upon the business acumen or judgment of any other party. Franchisee understands and acknowledges that each Franchisor Parties' business and reputation are of special, unique, and extraordinary character, which gives them a particular value, the loss of which cannot reasonably be compensated in damages in an action at law. Accordingly, Franchisee further agrees that in addition to any other rights or remedies that it may possess at law, Franchisor and Franchisor Parties shall be entitled to injunctive and other equitable relief in order to prevent or remedy a breach of the provisions of this Agreement by Franchisee or Franchisee Parties.
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- The terms of this Release arose from discussions between the parties. Accordingly, no claimed ambiguity in this Release shall be construed against any party claimed to have drafted or proposed the language in question.
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- This Release shall be governed by and construed pursuant to the laws of the State of North Carolina.
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- This Release may be executed in two copies, each of which shall be deemed an original.
IF THE FRANCHISED BUSINESS FRANCHISEE OPERATES UNDER THE FRANCHISE AGREEMENT IS LOCATED IN CALIFORNIA OR IF FRANCHISEE IS A RESIDENT OF CALIFORNIA, THE FOLLOWING SHALL APPLY:
SECTION 1542 ACKNOWLEDGMENT. IT IS FRANCHISEE'S INTENTION, ON FRANCHISEE'S OWN BEHALF AND ON BEHALF OF THE FRANCHISEE PARTIES, IN EXECUTING THIS RELEASE THAT THIS INSTRUMENT BE AND IS A GENERAL RELEASE WHICH SHALL BE EFFECTIVE AS A BAR TO EACH AND EVERY CLAIM, DEMAND, OR CAUSE OF ACTION RELEASED BY FRANCHISEE OR THE FRANCHISEE PARTIES. FRANCHISEE RECOGNIZES THAT FRANCHISEE OR THE FRANCHISEE PARTIES MAY HAVE SOME CLAIM, DEMAND OR CAUSE OF ACTION AGAINST FRANCHISOR PARTIES OF WHICH FRANCHISEE, HE, SHE, OR IT IS TOTALLY UNAWARE AND UNSUSPECTING, WHICH FRANCHISEE, HE, SHE, OR IT IS GIVING UP BY EXECUTING THIS RELEASE. IT IS FRANCHISEE'S INTENTION, ON FRANCHISEE'S OWN BEHALF AND ON BEHALF OF THE FRANCHISEE PARTIES, IN EXECUTING THIS INSTRUMENT THAT IT WILL DEPRIVE FRANCHISEE, HIM, HER, OR IT OF EACH SUCH CLAIM, DEMAND, OR CAUSE OF ACTION AND PREVENT FRANCHISEE, HIM, HER, OR IT FROM ASSERTING IT AGAINST FRANCHISOR PARTIES. IN FURTHERANCE OF THIS INTENTION, FRANCHISEE, ON FRANCHISEE'S OWN BEHALF AND ON BEHALF
OF THE FRANCHISEE PARTIES, EXPRESSLY WAIVES ANY RIGHTS OR BENEFITS CONFERRED BY THE PROVISIONS OF SECTION 1542 OF THE CALIFORNIA CIVIL CODE, WHICH PROVIDES AS FOLLOWS:
"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN THE CREDITOR'S FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY THE CREDITOR MUST HAVE MATERIALLY AFFECTED THE CREDITOR'S SETTLEMENT WITH THE DEBTOR."
FRANCHISEE ACKNOWLEDGES AND REPRESENTS THAT FRANCHISEE HAS CONSULTED WITH LEGAL COUNSEL BEFORE EXECUTING THIS RELEASE AND THAT FRANCHISEE UNDERSTANDS ITS MEANING, INCLUDING THE EFFECT OF SECTION 1542 OF THE CALIFORNIA CIVIL CODE, AND EXPRESSLY CONSENTS THAT THIS RELEASE SHALL BE GIVEN FULL FORCE AND EFFECT ACCORDING TO EACH AND ALL OF ITS EXPRESS TERMS AND PROVISIONS, INCLUDING, WITHOUT LIMITATION, THOSE RELATING TO THE RELEASE OF UNKNOWN AND UNSUSPECTED CLAIMS, DEMANDS, AND CAUSES OF ACTION.
Source: Item 23 — RECEIPT (FDD pages 50–199)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More Franchise Disclosure Document, the release agreement emphasizes that the franchisee must fully understand the document they are signing. Specifically, it states that the franchisee acknowledges they have read the release, understand its contents, and agree to all terms and conditions. This confirms that the franchisee enters the agreement knowingly and voluntarily.
This clause is significant because it aims to prevent franchisees from later claiming they didn't understand the release or were coerced into signing it. By signing, the franchisee confirms they are aware of their rights and obligations, including the non-disparagement clause, which prevents them from making negative remarks about Burneys Sweets More. This understanding is further reinforced by the statement that the terms of the release are contractual and not a mere recital, indicating the serious legal nature of the document.
For franchisees in California, there's an additional layer of acknowledgment. They must recognize they might be giving up claims they are unaware of and expressly waive rights under Section 1542 of the California Civil Code. This section typically protects individuals from unknowingly releasing claims. Burneys Sweets More requires California franchisees to acknowledge they've consulted with legal counsel and understand the implications of waiving this protection. This highlights the importance of seeking legal advice before signing any franchise agreement, especially one containing such waivers.
Overall, these provisions in the Burneys Sweets More release agreement are designed to ensure franchisees are fully informed and aware of the legal consequences of the document. It reduces the likelihood of future disputes based on misunderstandings and protects Burneys Sweets More from potential legal challenges related to the release.