What is the required action of the Canine Dimensions transferee regarding the existing franchise agreement?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
: Protected Territory:
CANINE DIMENSIONS FRANCHISING, LLC Its: Its:
SCHEDULE B
MUTUAL GENERAL RELEASE AGREEMENT
THIS MUTUAL GENERAL RELEASE AGREEMENT is made and entered into this day of, 20, by and between Canine Dimensions Franchising, LLC, a Florida limited liability company ("Canine Dimensions"), whose principal office Loop, Bonita Springs, Florida 34135 and is 23208 Sanabria , with an address at ("Franchisee"). A. Canine Dimensions and Franchisee entered into a Canine Dimensions Franchise Agreement (the "Franchise Agreement") dated, 20 granting Franchisee the right to operate a Canine Dimensions business using the confidential policies, procedures and techniques owned by Canine Dimensions Franchising, LLC, and using certain Marks, including the trademark and service mark Canine Dimensions. B. Franchisee desires to Transfer his/her its Canine Dimensions franchise / obtain a successor franchise (circle one).
C. Canine Dimensions, as permitted by the Franchise Agreement is conditioning its consent to such transfer or renewal on the execution of this Mutual General Release Agreement by Franchisee.
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.
- Waiver of California Civil Code Section 1542.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, if a franchisee desires to transfer their franchise, Canine Dimensions may require the franchisee to execute a Mutual General Release Agreement as a condition of consenting to the transfer. This agreement releases Canine Dimensions from any claims, debts, liabilities, and demands related to the Franchise Agreement up to the date of the release.
This requirement means that a franchisee looking to sell their Canine Dimensions franchise might have to give up any existing or future claims against the franchisor as part of the transfer process. This could include potential claims related to the franchise agreement itself.
However, the release does not apply to claims arising under specific state franchise laws such as the California Franchise Investment Law, Hawaii Franchise Investment Law, Maryland Franchise Registration and Disclosure Law, the Minnesota Franchise Act, the New York Franchise Investment Law, the North Dakota Franchise Investment Law, or the Washington Franchise Investment Protection Act. Additionally, the release excludes claims arising from the franchisee's failure to pay amounts due to Canine Dimensions in the ordinary course of business, as well as 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.
Prospective franchisees should carefully review the Mutual General Release Agreement and understand its implications before agreeing to a transfer. It is advisable to seek legal counsel to assess the potential impact on their rights and obligations.