factual

Which specific state franchise laws are excluded from the release agreement for Canine Dimensions?

Canine_Dimensions Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. 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 the 2025 FDD, the Mutual General Release Agreement for Canine Dimensions specifically excludes claims arising from franchise laws in several states. This means that even if a franchisee signs a general release, they still retain the right to pursue claims under the franchise laws of these listed states.

The states whose franchise laws are excluded from the release are California, Hawaii, Maryland, Minnesota, New York, North Dakota, and Washington. Specifically, the exclusion applies to claims 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 exclusion provides an important protection for franchisees, ensuring that they do not inadvertently waive their rights under state franchise laws when signing a general release. It is a fairly common practice to see such exclusions in franchise agreements, as state franchise laws are designed to protect franchisees from unfair practices by franchisors. Franchisees should carefully review the release agreement and understand which rights they are waiving and which rights they are retaining.

It is also important to note that the release does not apply to 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. Furthermore, the release excludes claims arising from Franchisee's failure to pay any amounts due Canine Dimensions in the ordinary course of business.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.