Does the Cinch I.T. Disclosure Document include a form of General Release?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 23: RECEIPTS]
EXHIBIT M TO THE DISCLOSURE DOCUMENT CINCH FRANCHISE, LLC FORM OF GENERAL RELEASE
FORM OF GENERAL RELEASE
This General Release ("Release") is made and entered into on this day of, 20 by and between CINCH FRANCHISE, LLC and ("Franchisor") ("Franchisee"). WITNESSETH: WHEREAS, Franchisor and Franchisee are parties to a CINCH I.T. Franchise Agreement CINCH (the "Franchise Agreement") dated, 20, granting Franchisee the right to operate a I.T. business under Franchisor's proprietary marks and system. NOW THEREFORE, in consideration of the mutual covenants and conditions contained in this Release, and other good and valuable consideration, receipt of which is hereby acknowledged by each of the parties hereto, the parties hereto agree as follows: Franchisee, for itself and its successors, predecessors, assigns, beneficiaries, executors, trustees, agents, representatives, employees, officers, directors, shareholders, partners, members, subsidiaries and affiliates (jointly and severally, the "Releasors"), irrevocably and absolutely releases and forever discharges Franchisor and its successors, predecessors, assigns, beneficiaries, executors, trustees, agents, representatives, employees, officers, directors, shareholders, partners, members, subsidiaries and affiliates (jointly and severally, the "Releasees"), of and from all claims, obligations, actions or causes of action (however denominated), whether in law or in equity, and whether known or unknown, present or contingent, for any injury, damage, or loss whatsoever arising from any acts or occurrences occurring as of or prior to the date of this Release relating to the Franchise Agreement, the business operated under the Franchise Agreement, and/or any other agreement between any of the Releasees and any of the Releasors. The Releasors, and each of them, also covenant not to sue or otherwise bring a claim against any of the Releasees regarding any of the claims being released under this Release. This Release shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This General Release shall not apply to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder. IN WITNESS WHEREOF, the parties hereto have executed this Release as of the date first above written. CINCH FRANCHISE, LLC
Source: Item 22 — CONTRACTS (FDD page 60)
What This Means (2024 FDD)
Yes, according to the 2024 Cinch I.T. Franchise Disclosure Document, a form of General Release is included as Exhibit M. This release is an agreement between Cinch I.T. and the franchisee, where the franchisee agrees to release Cinch I.T. from any claims, obligations, actions, or causes of action related to the Franchise Agreement or the business operated under it, occurring before the date of the release. This includes known and unknown claims.
The General Release also includes a covenant by the franchisee not to sue Cinch I.T. regarding any claims being released. However, the release specifies that it does not apply to any liability under the Maryland Franchise Registration and Disclosure Law or claims arising under the Washington Franchise Investment Protection Act.
Item 23 of the Cinch I.T. Franchise Disclosure Document also states that a franchisee must sign a general release if they renew or transfer their franchise. However, California Corporations Code §31512 voids a waiver of rights under the Franchise Investment Law (California Corporations Code §§31000 through 31516), and Business and Professions Code §20010 voids a waiver of rights under the Franchise Relations Act (Business and Professions Code §§20000 through 20043). Additionally, any condition in the Franchise Agreement that would result in a waiver of compliance with any provision of the California Franchise Relations Act is void to the extent that such provision violates such law. Also, no statement signed by a franchisee shall waive any claims under any applicable state franchise law, including fraud in the inducement, or disclaiming reliance on any statement made by the franchisor.