Under what circumstances does Cicis require a general release from the franchisee and their owners?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| ON SMILE LLC ("we," "us," or "our") and the undersigned franchisee ("you" or |
|---|
| "your"), currently are parties to a certain franchise agreement dated |
| , 20 |
| (the "Agreement"). You have asked us to take the following action or to agree to |
| the following request: |
| We have the right under the |
| Agreement to obtain a general release from you and your owners as a condition of taking this |
| action or agreeing to this request. Therefore, we are willing to take the action or agree to the |
| request specified above if you and your owners give us the release and covenant not to sue provided |
| below in this document. You and your owners are willing to give us the release and covenant not |
| to sue provided below as partial consideration for our willingness to take the action or agree to the |
| request described above. |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 31–38)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis has the right to obtain a general release from the franchisee and their owners as a condition of taking a specific action or agreeing to a request made by the franchisee. This means that if a franchisee asks Cicis to take a certain action or agrees to a specific request, Cicis can require the franchisee and their owners to sign a release, which prevents them from suing Cicis for any claims related to that action or request.
The release and covenant not to sue are provided by the franchisee and their owners as partial consideration for Cicis's willingness to take the action or agree to the request. This indicates that the release is part of a negotiation where both parties give something of value. The franchisee gets the action or request they want, and Cicis gets protection from potential lawsuits.
However, if the Cicis franchise is located in Maryland, or if any of the releasing parties are residents of Maryland, any general release provided does not apply to liability under the Maryland Franchise Registration and Disclosure Law. This means that the release has limitations and does not cover everything, particularly concerning Maryland franchise law.