What does the Chem-Dry franchisee release Chem-Dry from in this agreement?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
NOW, THEREFORE, in consideration of the covenants contained herein and other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree as follows:
- Release. The Franchisee hereby forever releases, remises and discharges CDI and CDI's affiliates, its shareholders, directors, officers, employees and agents, and all its respective heirs, executors, administrators, successors and assigns, of and from any and all known and unknown claims, causes of action, suits, debts, agreements, promises and demands of whatever nature or kind, in law or in equity, which the Franchisee now has, ever had, or, but for this release, hereafter would or could have arising from the relationship between the parties or relating in any manner to the Franchise Agreements, except for CDI's obligation under the franchise agreement on and after the date of this Agreement. Franchisee hereby warrants and represents to CDI that he or she has not assigned any of the above-described claims, causes of action, suits, debts, agreements, promises and demands released hereunder.
For franchises in the State of California, the Franchisee acknowledges that this Release Agreement is a general release which extends to all known and unknown claims, causes of action, suits, debts, agreements, promises and demands whether or not claimed or suspected. The Franchise waives all of the provisions of California Civil Code Section 1542, and similar laws of other jurisdictions. California Civil Code Section 1542 reads as follows:
"A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.
For franchisees in the State of Washington, the release(s) do not apply with respect to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, the Release Agreement outlines the scope of what a franchisee releases Chem-Dry from when acquiring an additional franchise or renewing their franchise agreement. Specifically, the franchisee releases Chem-Dry and its affiliates from all known and unknown claims, causes of action, suits, debts, agreements, promises, and demands of any kind in law or equity. This release covers claims the franchisee currently has, has ever had, or might have in the future, relating to the Franchise Agreements or the relationship between the parties.
This release is comprehensive, extending to various potential legal and financial issues that could arise from the franchise relationship. However, there is an exception: Chem-Dry remains obligated under the existing franchise agreement from the date of the Release Agreement forward. This means that while past and present claims are waived, Chem-Dry is still responsible for fulfilling its duties as outlined in the current franchise agreement.
For franchisees in California, the release extends to all known and unknown claims, even those not suspected. The franchisee waives California Civil Code Section 1542, which states that a general release does not cover claims the creditor doesn't know or suspect to exist, which would have materially affected their settlement with the debtor if known. For franchisees in Washington, the releases do not apply to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and its rules.