Who are considered 'Designees' of Canine Dimensions and the Franchisee in the context of the Mutual General Release Agreement?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
In consideration of the mutual covenants and conditions contained in this Mutual General Release and in the Franchise Agreement, and other good and valuable consideration, receipt of which is hereby acknowledged by each of the parties, the parties agree as follows:
-
- Canine Dimensions and Franchisee do hereby mutually release and forever discharge each other and each other's heirs, successors, representatives, assigns, agents, employees, officers, and directors ("Designees"), and each of them, of and from any claims, debts, liabilities, demands, obligations, costs, expenses, actions, and causes of action of every nature, character, and description known or unknown, vested or contingent, which each party now owns or holds, or has at any time heretofore owned or held, or may at any time own or hold against the other party hereto, arising prior to and including the date of this Mutual General Release Agreement; provided, however, that this release shall exclude claims arising from assertion of any continuing rights reserved in this Mutual General Release Agreement.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, the Mutual General Release Agreement defines 'Designees' for both Canine Dimensions and the franchisee. For Canine Dimensions, 'Designees' include their heirs, successors, representatives, assigns, agents, employees, officers, and directors. The same categories apply to the franchisee's 'Designees.'
This definition is important because the Mutual General Release Agreement releases both parties and their 'Designees' from any claims, debts, liabilities, demands, obligations, costs, expenses, actions, and causes of action that exist up to the date of the agreement. This means that not only are Canine Dimensions and the franchisee releasing each other from potential legal issues, but they are also releasing all of the individuals and entities associated with each party as defined in the agreement.
However, the release does not apply to certain claims, such as those arising under specific state franchise laws or from the franchisee's failure to pay amounts due to Canine Dimensions in the ordinary course of business. Additionally, the release does not cover claims Canine Dimensions may have under any promissory notes related to the Franchise Agreement or other payment arrangements. Franchisees should carefully review these exceptions and understand their implications before signing the Mutual General Release Agreement.
Furthermore, the franchisee acknowledges that they are releasing unknown claims and waiving rights under California Civil Code Section 1542 or similar statutes. This means the franchisee is agreeing to release claims they may not even be aware of at the time of signing the agreement, which could have a material impact on their settlement with Canine Dimensions. It is advisable for prospective franchisees to seek legal counsel to fully understand the scope and implications of this waiver before executing the Mutual General Release Agreement.