What is addressed in section 2.1 of the Canine Dimensions TERI agreement?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
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- This release shall not apply to any claims which the Franchisee may have arising under (a) the California Franchise Investment Law or the California Franchise Relations Act; (b) the Hawaii Franchise Investment Law; (c) the Maryland Franchise Registration and Disclosure Law; (d) the Minnesota Franchise Act; (e) the New York Franchise Investment Law; (f) the North Dakota Franchise Investment Law; or (g) the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder. This release shall exclude claims arising from Franchisee's failure to pay any amounts due Canine Dimensions in the ordinary course of business. The parties expressly agree that this Mutual General Release Agreement will not apply to any claims Canine Dimensions may have under any Promissory Notes ancillary to the Franchise Agreement, or that pertain to other payment arrangements that the parties may have agreed upon.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, section 2.1 of the Mutual General Release Agreement with Canine Dimensions addresses exclusions to the release. Specifically, it states that the release does not apply to claims the franchisee may have under various state franchise laws, including those in California, Hawaii, Maryland, Minnesota, New York, North Dakota, and Washington.
Additionally, section 2.1 specifies that the release excludes claims arising from the franchisee's failure to pay amounts due to Canine Dimensions in the ordinary course of business. It also clarifies that the agreement does not apply to claims Canine Dimensions may have under any promissory notes ancillary to the Franchise Agreement or pertaining to other payment arrangements between the parties.
This section is important for prospective franchisees as it outlines the specific types of claims that are not covered by the general release, ensuring that franchisees retain their rights under certain circumstances, particularly those related to state franchise laws and payment obligations. Franchisees should carefully review these exclusions to understand the scope of the release and their legal rights.