Does the Cr3 American Exteriors Franchise Disclosure Document include a schedule for a Release?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
tment of Financial Institutions, PO Box 41200, Olympia, WA 98504-1200 | Securities Administrator Washington State Department of Financial Institutions 150 Israel Road SW Tumwater, WA 98501 | | Wisconsin | Wisconsin Department of Financial Institutions 345 West Washington Avenue Madison, WI 53703 (608) 266-8557 | Wisconsin Department of Financial Institutions 345 West Washington Avenue Madison, WI 53703 |
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- Release- Franchisee and all Franchises' guarantors, members, employees, agents, successors, assigns and affiliates fully and finally release and forever discharge Releasee, its past and present agents, employees, officers, directors, members, Area Representatives, Franchisees, successors, assigns and affiliates (collectively "Released Parties") from any and all claims, actions, causes of action, contractual rights, demands, damages, costs, loss of services, expenses and compensation which Area Representative could assert against Released Parties or any of them up through and including the date of this Release.
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- THIS IS A SPECIFIC RELEASE GIVING UP ALL RIGHTS WITH RESPECT TO THE TRANSACTIONS OR OCCURRENCES THAT ARE BEING RELEASED UNDER THIS AGREEMENT.
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- California Releasor- You represent and warrant that YOU EXPRESSLY WAIVE ANY AND ALL RIGHTS AND BENEFITS UNDER CALIFORNIA CIVIL CODE §1542, which provides as follows:
A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.
- This Release Agreement does not apply to any liabilities arising under the California Franchise Investment Law, the California Franchise Relations Act, Indiana Code § 23-2- 2.5.1 through 23-2-2.7-7, the Maryland Franchise Registration and Disclosure Law,
Michigan Franchise Investment Law, Minnesota Franchise Act, North Dakota franchise laws, the Rhode Island Investment Act, and the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, or the rules adopted thereunder.
Approved and agreed to by:
Please date, sign, and keep this copy for your records.
SCHEDULE 7 – PROMISSORY NOTE
| 19109 W Catawba Ave Suite 200, Cornelius NC 28031 | Southern Middle LLC / Ryan Smith | 704-832-8910 | ||
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| Tennessee | 1150 South Bear Creek Rd. Dickson, TN 37055 | Tri Star Restoration / Joe Rushing | 615-785-3604 | |
| Texas | 412 Rolling Hills Dr Conroe, TX 77304 | Carr Construction Services LLC / Jake Carr | 936-331-3716 | The Maker may prepay this Note, in whole or in part, without penalty, at any time. |
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
Yes, the 2025 Cr3 American Exteriors Franchise Disclosure Document includes information regarding a release in Schedule 7 and section 10.8 of the agreement. Schedule 7 is titled "Promissory Note" and contains information regarding a release. Section 10.8, titled "Release of Prior Claims," states that by executing the agreement, the franchisee releases Cr3 American Exteriors from all claims arising prior to the date of the agreement, excluding claims arising from representations in the Franchise Disclosure Document.
Specifically, the release covers the franchisee, their heirs, legal representatives, successors, and assignees, and each assignee of the agreement. It discharges Cr3 American Exteriors, including their past and present employees, agents, members, officers, and directors, as well as any parent, subsidiary, and affiliated entities, from any and all claims arising before the agreement date. However, this release does not apply to claims the franchisee may have due to representations made in the Cr3 American Exteriors Franchise Disclosure Document.
Additionally, the document mentions a specific waiver related to California Civil Code §1542, where the franchisee expressly waives rights and benefits under this code, which pertains to claims not known or suspected at the time of executing the release. This waiver is significant for franchisees in California as it affects their ability to pursue claims based on information they were unaware of when signing the release. However, this release agreement does not apply to any liabilities arising under the California Franchise Investment Law, the California Franchise Relations Act, Indiana Code § 23-2- 2.5.1 through 23-2-2.7-7, the Maryland Franchise Registration and Disclosure Law, Michigan Franchise Investment Law, Minnesota Franchise Act, North Dakota franchise laws, the Rhode Island Investment Act, and the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, or the rules adopted thereunder.
These provisions outline the scope and limitations of the release, highlighting the importance for prospective franchisees to carefully review and understand their rights and obligations before signing the Franchise Agreement. It is advisable for franchisees to seek legal counsel to fully comprehend the implications of these release clauses and waivers, especially concerning potential future claims or disputes.