Can Chocolate Fish Coffee require a franchisee to assent to a release that deprives them of rights and protections?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- **4.
Miscellaneous.** If any of the provisions of this Release are held invalid for any reason, the remainder of this Release will not be affected and will remain in full force and effect.
In the event of any dispute concerning this Release, the dispute resolution, governing law, and venue provisions of the Franchise Agreement shall apply.
Releasor agrees to take any actions and sign any documents that Franchisor reasonably requests to effectuate the purposes of this Release.
This Release contains the entire agreement of the parties concerning the subject matter hereof.
5. State Addenda.
[Maryland Residents]: This Release shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
[Washington Residents]: A release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act except when executed pursuant to a negotiated settlement after the franchise agreement is in effect and where the parties are represented by independent counsel.
Agreed to by: Name: Date:
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the franchise agreement includes a release that may affect a franchisee's rights, but with some limitations depending on the franchisee's location. Specifically, the standard release's provisions remain in effect even if some parts are deemed invalid. In the event of a dispute about the release, the dispute resolution, governing law, and venue provisions of the Franchise Agreement will be applied.
For franchisees in Maryland, the release does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. For franchisees in Washington, a release or waiver of rights cannot include rights under the Washington Franchise Investment Protection Act unless it is executed as part of a negotiated settlement after the franchise agreement is in effect, and both parties are represented by independent counsel.
This means that Chocolate Fish Coffee franchisees in Maryland and Washington have additional protections under their respective state laws, ensuring that the release does not inadvertently waive those rights unless specific conditions are met. Prospective franchisees should carefully review the release and understand how it interacts with their state's franchise laws, especially if they are located in Maryland or Washington, and seek independent legal counsel.