Can Chem Dry change the requirement to sign a general release when transferring a franchise?

According to Chem Dry's 2024 Franchise Disclosure Document, the requirement for a franchisee, its principals, and the transferee to sign a general release when transferring a franchise is subject to change at Chem Dry's discretion. This release, in a form satisfactory to Chem Dry, involves releasing any and all claims against Chem Dry and its affiliates, shareholders, officers, directors, employees, and agents, to the extent permitted by applicable law.

This means that Chem Dry retains the flexibility to modify or waive this requirement. A prospective franchisee should be aware that this requirement could be in place at the time of transfer, requiring them and their principals to release any claims against Chem Dry. The transferee (buyer) would also need to sign the release if Chem Dry had a prior relationship with them.

It is important to note that the release is only effective to the extent permitted by applicable law. This suggests that certain legal rights may not be waivable, depending on the jurisdiction. Franchisees should seek legal counsel to understand the full implications of signing such a release and what rights they may be giving up. Given Chem Dry's ability to change this requirement, prospective franchisees should confirm the current policy with Chem Dry at the time of transfer to ensure they are fully informed.