Can the Form of General Release for Closet Storage Concepts be changed?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
dence that Franchisee has the right to remain in possession of the premises at the Approved Location or obtain Franchisor's approval of a new site for the operation of the Approved Location for the duration of the renewal term of this Agreement.
- 2.4.3 Franchisee has executed a release of any and all claims against Franchisor and its parents, affiliates, and their equity owners, officers, directors, agents, employees, attorneys and accountants arising out of or related to this Agreement or any related agreement.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the form of general release can be changed by the Franchisor. Specifically, when renewing the franchise agreement, the franchisee must execute a release of all claims against Closet Storage Concepts and its affiliates. The franchise agreement states that the release must contain language and be of the form chosen by Closet Storage Concepts.
This means that Closet Storage Concepts has the right to determine the specific terms and conditions of the release, ensuring it protects the company's interests. However, there is an exception: the release cannot waive liability if a state statute regulating franchising specifically provides for such liability.
Exhibit 5 of the Franchise Agreement contains the current form of release, but the title indicates that it is 'Subject to Change'. As a prospective franchisee, it is important to carefully review the form of release attached as Exhibit 5 and understand the scope of claims being released. Franchisees should also consult with a legal professional to fully understand their rights and obligations under the release, especially concerning state statutes that protect franchisees.