Is there an exception to the covenant not to sue in the Chocolate Fish Coffee release?

According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, the release includes exceptions for Maryland and Washington residents. Specifically, the release does not apply to any liability under the Maryland Franchise Registration and Disclosure Law for Maryland residents. For Washington residents, a release or waiver of rights executed by a franchisee does not include rights under the Washington Franchise Investment Protection Act unless it is executed pursuant to a negotiated settlement after the franchise agreement is in effect and where the parties are represented by independent counsel.

These exceptions mean that franchisees in Maryland and Washington retain certain rights under their respective state franchise laws, even if they sign a general release. This is a significant protection for franchisees, as it ensures that they do not inadvertently waive their statutory rights. The Washington exception is particularly noteworthy, as it requires a negotiated settlement with independent counsel for a release of rights under the Washington Franchise Investment Protection Act to be valid.

For a prospective Chocolate Fish Coffee franchisee, this information highlights the importance of understanding the specific franchise laws in their state and the implications of signing a release. Franchisees should consult with an attorney to ensure they fully understand their rights and obligations before signing any documents, especially a release. This is particularly crucial in Maryland and Washington, where specific state laws provide additional protections.