What is the legal basis for the Franchisee providing a release to The C12 Group, LLC?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
| THE UNDERSIGNED ("Franchisee"), effective as of | , 2 | , for good and valuable |
|---|---|---|
| consideration, the receipt and sufficiency of which are hereby acknowledged, on behalf of itself, its | ||
| successors, assigns, heirs, and affiliates, hereby forever and irrevocably releases The C12 Group, LLC | ||
| ("Franchisor"), its members, managers, officers, employees, and agents, and their respective successors, | ||
| assigns, heirs, and affiliates, from any and all | liabilities and obligations, known and unknown, contingent | |
| and non-contingent, and liquidated and non-liquidated, arising at any time with respect to that certain | ||
| Franchise Agreement between the undersigned and Franchisor dated onor | about | , |
| 2 | ||
| , as amended (the "Franchise | ||
| Agreement"). | ||
| The provisions hereof shall not apply to any liability arising with respect to the franchise laws under the | ||
| Maryland Franchise Registration and Disclosure Law. | ||
| This Release is inapplicable with respect to claims arising under the Washington Franchise Investment | ||
| Protection Act, RCW 19.100, and the rules adopted thereunder. | ||
| [Signature of Franchisee] |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, a franchisee provides a release to The C12 Group, LLC in exchange for consideration. This release, as detailed in the provided exhibit, covers all liabilities and obligations, whether known or unknown, contingent or non-contingent, and liquidated or non-liquidated, that may arise from the Franchise Agreement. The release is effective from the date specified and extends to the franchisee's successors, assigns, heirs, and affiliates, as well as to The C12 Group, LLC, its members, managers, officers, employees, and agents, and their respective successors, assigns, heirs, and affiliates.
However, the release has specific limitations. It does not apply to any liability arising under the franchise laws of the Maryland Franchise Registration and Disclosure Law. Additionally, the release is inapplicable to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and its associated rules. This means that franchisees in Maryland and Washington retain certain legal rights and protections under their respective state franchise laws, regardless of the general release provided to The C12 Group, LLC.
In practical terms, this release means that a franchisee is giving up their right to sue C12 Group for most issues related to the franchise agreement. However, the exceptions for Maryland and Washington franchisees are important. Prospective franchisees should carefully review the release with a legal professional to fully understand its implications and how it affects their rights, especially in light of these state-specific exceptions. The exhibit indicates that there is a signature line for the franchisee, indicating that this release is a signed agreement.