Are there any claims excluded from the mutual release agreement for Canine Dimensions?
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.
-
- 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's 2025 Franchise Disclosure Document, the mutual general release agreement between Canine Dimensions and the franchisee includes specific exclusions. This means that certain types of claims are not covered by the release, allowing the franchisee to still pursue them even after signing the agreement.
The release does not apply to claims the franchisee may have under franchise investment laws of California, Hawaii, Maryland, Minnesota, New York, North Dakota, or Washington. Additionally, the release excludes claims arising from the franchisee's failure to pay amounts due to Canine Dimensions in the ordinary course of business. The agreement also specifies that it 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.
These exclusions provide some protection to the franchisee, ensuring they do not waive their rights to pursue legal claims under specific franchise laws or claims related to payment obligations. However, franchisees should carefully review the entire release agreement with legal counsel to fully understand the scope of the release and the implications of these exclusions. It is also important to note that the agreement includes a waiver of California Civil Code Section 1542, which pertains to unknown claims, meaning the franchisee is releasing claims they may not even be aware of at the time of signing the release.