In the Canine Dimensions Mutual General Release Agreement, what does the Franchisee acknowledge regarding their understanding and acceptance of the waiver of California Civil Code Section 1542?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.
- 3.2 With respect to those Claims being released pursuant to this Mutual General Release Agreement, Franchisee, for itself and its Constituents, acknowledges that it is releasing unknown claims and waives all rights it has or may have under California Civil Code Section 1542 or any other statute or common law principle of similar effect. For purposes of this Section 3, Franchisee shall be considered to be a creditor of the Designees, and each of them.
- 3.3 Franchisee acknowledges that this general release extends to claims which Franchisee does not know or suspect to exist in favor of Franchisee at the time of executing this Mutual General Release Agreement, which if known by Franchisee may have materially affected its decision to enter into this Mutual General Release Agreement. It is understood by Franchisee that the facts in respect of which this Mutual General Release Agreement is given may hereafter turn out to be other than or different from the facts in that connection known or believed to be true. Franchisee therefore, expressly assumes the risk of the facts turning out to be so different and agrees that this Mutual General Release Agreement shall be in all respects effective and not subject to termination or rescission by any such difference in facts.
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 specific acknowledgements and waivers related to California Civil Code Section 1542. The franchisee acknowledges that they are familiar with Section 1542 of the California Civil Code.
Specifically, the franchisee acknowledges that they are releasing unknown claims and waiving all rights they have or may have under California Civil Code Section 1542 or any other similar statute or common law principle. For the purposes of this section, the franchisee is considered a creditor of Canine Dimensions' designees.
The franchisee also acknowledges that this general release extends to claims which the franchisee does not know or suspect to exist at the time of executing the Mutual General Release Agreement, and that such unknown claims, if known, may have materially affected their decision to enter into the agreement. The franchisee expressly assumes the risk that facts may turn out to be different from what they currently know or believe and agrees that the Mutual General Release Agreement will remain effective and not subject to termination or rescission due to any such differences in facts.