Does the Canine Dimensions Mutual General Release Agreement discharge agents of the parties?
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:
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- 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.
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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)
According to Canine Dimensions' 2025 Franchise Disclosure Document, the Mutual General Release Agreement includes the discharge of agents. The agreement mutually releases and discharges Canine Dimensions and the franchisee, along with their respective heirs, successors, representatives, assigns, agents, employees, officers, and directors, collectively referred to as "Designees". This release covers any claims, debts, liabilities, demands, obligations, costs, expenses, actions, and causes of action that exist up to the date of the agreement. However, this release does not extend to claims arising from any continuing rights reserved in the Mutual General Release Agreement.
However, the release does not apply to claims the franchisee may have under specific state franchise laws, including those in California, Hawaii, Maryland, Minnesota, New York, North Dakota, and Washington. It also excludes claims arising from the franchisee's failure to pay amounts due to Canine Dimensions in the ordinary course of business. Furthermore, the agreement does not apply to claims Canine Dimensions may have under any promissory notes or other payment arrangements related to the Franchise Agreement.
This means that as a Canine Dimensions franchisee, you are agreeing to release Canine Dimensions from potential liabilities, and Canine Dimensions is doing the same for you, with specific exceptions carved out for certain legal and financial obligations. It is important for a prospective franchisee to carefully review the exceptions and understand the full scope of what they are releasing, as well as the implications of waiving rights under California Civil Code Section 1542, which pertains to unknown claims.