What is the scope of the claims released by the Franchisee in the Burneys Sweets More agreement?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
eemed 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.
If the Franchised Business is located in Maryland or if Franchisee is a resident of Maryland, the following shall apply:
Any general release provided for hereunder shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
All releases given by the Parties are intended to constitute a full, complete, unconditional and immediate substitution for any and all rights, claims, demands and causes of action whatsoever which exist, or might have existed, on the date of this document. The Parties represent and warrant that they have made such independent investigation of the facts, law and otherwise pertaining to all matters discussed, referred to or released in or by this document as the Releasing Parties, in the Releasing Parties independent judgment, believe necessary or appropriate.
| (ii) solicit, divert or attempt to solicit or divert any person or party that was a | |
|---|---|
| customer of the Shop during the one (1) year period prior to the expiration, termination, or | |
| non-renewal of this Agreement, to any Competitive Business. |
EXHIBIT G
ACH/EFT TRANSFER AGREEMENT
AUTHORIZATION TO HONOR CHECKS AND DEBITS BY AND PAYABLE TO THE FOLLOWING PAYEE(S):
The undersigned depositor ("Franchisee" or "Payor") hereby authorizes DMG BURNEY, INC.
Source: Item 23 — RECEIPT (FDD pages 50–199)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More Franchise Disclosure Document, the scope of claims released by the franchisee is comprehensive, especially for franchisees operating in California. Franchisees are releasing Burneys Sweets More from any and all claims, demands, or causes of action. This includes claims that the franchisee may not even be aware of at the time of signing the release. This is further emphasized by the franchisee's express waiver of rights and benefits conferred by California Civil Code Section 1542, which states that a general release does not extend to claims which the creditor does not know or suspect to exist at the time of executing the release.
For franchisees located in California, this means they are giving up their right to sue Burneys Sweets More for any reason, even if they later discover that Burneys Sweets More did something wrong. The FDD states that Burneys Sweets More requires the franchisee to acknowledge they have consulted with legal counsel and understand the implications of this waiver, including the effect of Section 1542 of the California Civil Code. This underscores the importance of seeking legal advice before signing the release, as the franchisee is essentially forfeiting any future claims against the franchisor.
However, if the Burneys Sweets More franchised business is located in Maryland, or if the franchisee is a resident of Maryland, any general release provided for in the agreement will not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This means that Maryland franchisees retain certain rights and protections under Maryland state law, even if they sign a general release. This is a critical distinction for prospective franchisees to understand, as the scope of the release can vary significantly depending on their location.
In addition to the general release, the franchisee also agrees to a non-disparagement clause, promising not to make any disparaging remarks about Burneys Sweets More. This includes any actions or perceived omissions related to the Release Agreement. The franchisee acknowledges that Burneys Sweets More's business and reputation are of special and unique character, and any damage to their reputation cannot be adequately compensated with monetary damages. Therefore, Burneys Sweets More is entitled to injunctive and other equitable relief to prevent or remedy any breach of this non-disparagement clause. This means that Burneys Sweets More can seek a court order to stop a franchisee from making disparaging remarks, in addition to any other legal remedies available to them.