Does the waiver by a Crawlspace Medic franchisee include claims of breach of fiduciary duty?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 5.2.5 Franchisee shall execute a general release of all claims Franchisee may have against CSM Franchise Group, LLC, its parent, subsidiaries and affiliates, its officers, directors, shareholders, agents, and employees, whether in their corporate and/or individual capacities.
This release will include all claims arising under any federal, state, or local law, rule, or ordinance.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, as a condition of renewal, a franchisee must execute a general release of all claims against Crawlspace Medic. This release encompasses all claims arising under any federal, state, or local law, rule, or ordinance.
This means that if a franchisee renews their agreement, they must waive all possible claims against Crawlspace Medic and related parties. This waiver covers a broad range of potential legal issues, offering significant protection to the franchisor.
However, the FDD excerpt does not explicitly mention whether this release includes a waiver of claims for breach of fiduciary duty. A prospective franchisee should seek clarification from Crawlspace Medic regarding whether the general release specifically includes or excludes claims of breach of fiduciary duty. Understanding the scope of this waiver is crucial before signing the release and renewing the franchise agreement.