What rights are the Franchisee Parties waiving in the Canopy Lawn Care sample release agreement?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
ist regarding the subject matter of the release contained in this Section 2, and which, if known at the time of signing this Agreement, may have materially affected this Agreement and its decision to enter into it and grant the release contained in this Section 2. Nevertheless, Franchisee and Guarantors, on behalf of themselves and the other Franchisee Parties, intend to fully, finally and forever settle and release all Claims that now exist, may exist, or previously existed, as set out in the release contained in this Section 2, whether known or unknown, foreseen or unforeseen, or suspected or unsuspected, and the release given herein is and will remain in effect as a complete release, notwithstanding the discovery or existence of such additional or
different facts. The Franchisee Parties hereby waive any right or Claim that might arise as a result of such different or additional Claims or facts.
b. Franchisee and Guarantors represent and warrant as follows: (i) none of them are aware of any Claim that is not covered by the release contained in this Section 2, (ii) none of them have assigned or transferred any of the Claims released herein to any person or entity and no person or entity has subrogated to or has any interest or rights in any Claims, and (iii) each of them has the full right, power, and authority to enter into this Agreement, to grant on behalf of itself and the other Franchisee Parties the releases contained herein, and to perform its obligations hereunder.
[California-specific language: Franchisee and Guarantors, on behalf of the Franchisee Parties, waive all rights and protections that they have or may have under Section 1542 of the California Civil Code. Section 1542 provides as follows:
A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to the 2025 FDD, Canopy Lawn Care's sample release agreement requires Franchisee Releasing Parties to release Franchisor Released Parties from all claims, debts, demands, damages, costs, expenses, actions, causes of action, or suits of any kind. This includes those at common law, statutory, or otherwise, whether known or unknown, contingent or matured. The claims being waived extend to those arising from the franchisee's Lawn Care Business, the Franchise Agreement, or any contractual relation between the franchisee and franchisor.
Furthermore, the Franchisee Releasing Parties agree to never institute, prosecute, or assist others in prosecuting any claim, suit, or action against the Franchisor Released Parties. This encompasses claims for damages (actual, consequential, or punitive), injunctive relief, or other loss or injury to person or property. It also includes costs, expenses, attorneys' fees, amounts paid on account of recovery or settlement, or any other damage or harm, based upon any event, act, or omission that occurred prior to the date of the release.
For franchisees in California, the agreement includes a waiver of rights and protections under Section 1542 of the California Civil Code. This section states that a general release does not extend to claims that the releasing party does not know or suspect to exist at the time of executing the release, and that, if known, would have materially affected their settlement with the released party. The Canopy Lawn Care agreement emphasizes that this waiver is an essential term and that the franchisee has had adequate opportunity to gather all necessary information before entering into the agreement.