Under what circumstances does the general release related to the assignment or renewal of a Cinnabon franchise not act as a waiver of rights?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
This General Release is not intended as a waiver of those rights of the undersigned which cannot be waived under applicable state franchise laws nor is it intended to relieve CINNABON FRANCHISOR SPV LLC or any of the RELEASEE PARTIES, directly or indirectly, from liability imposed by the Maryland Franchise Registration and Disclosure Law.
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- A contractual requirement that you sign a general release will not apply to claims you may have under the North Dakota Franchise Investment Law.
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- You must sign a general release if you renew or transfer your franchise. California Corporations Code § 31512 voids a waiver of your rights under the Franchise Investment Law (California Corporations Code §§ 31000 through 31516). California Business and Professions Code § 20010 voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code §§ 20000 through 20043).
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General Release.** A release or waiver of rights in the franchise agreement or related agreements purporting to bind the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act or any rules or orders thereunder is void except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2).
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- 815 ILCS § 705/41 (Illinois Franchise Disclosure Act) states that "any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of this Act or any other law of this State is void."
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- No release language required on renewal, transfer, or signing the Franchise Agreement will relieve us or any other person, directly or indirectly, from liability imposed by the Maryland Franchise Registration and Disclosure Law.
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- No provision of the Disclosure Document or Franchise Agreement will be construed as a release, estoppel, or waiver by you of any liability we incur under the Maryland Franchise Registration and Disclosure Law.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, a general release signed during the assignment or renewal of a franchise agreement does not act as a waiver of rights under specific circumstances, varying by state law.
In Maryland, no release language required on renewal, transfer, or signing the Franchise Agreement will relieve Cinnabon from liability imposed by the Maryland Franchise Registration and Disclosure Law. Similarly, no provision of the Disclosure Document or Franchise Agreement will be construed as a release, estoppel, or waiver by the franchisee of any liability Cinnabon incurs under the Maryland Franchise Registration and Disclosure Law.
In North Dakota, a contractual requirement that a franchisee sign a general release will not apply to claims they may have under the North Dakota Franchise Investment Law. Additionally, the provisions of the Franchise Agreement on governing law, jurisdiction, and choice of law will not waive any right conferred on the franchisee by the North Dakota Franchise Investment Law. In California, a general release will not apply to claims under the California Franchise Investment Law and the California Franchise Relations Act. California Corporations Code § 31512 voids a waiver of rights under the Franchise Investment Law, and California Business and Professions Code § 20010 voids a waiver of rights under the Franchise Relations Act.
In Washington, a release or waiver of rights in the franchise agreement or related agreements purporting to bind the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act is void unless executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2). Any such release or waiver executed in connection with a renewal or transfer of a franchise is likewise void except as provided for in RCW 19.100.220(2). In Illinois, any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of the State is void.