Does the general release agreement for Cream require franchisees to acknowledge they have consulted with legal counsel?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
YOU ACKNOWLEDGE AND REPRESENT THAT YOU HAVE CONSULTED WITH LEGAL COUNSEL BEFORE EXECUTING THIS RELEASE AND THAT YOU UNDERSTAND ITS MEANING, INCLUDING THE EFFECT OF SECTION 1542 OF THE CALIFORNIA CIVIL CODE, AND EXPRESSLY CONSENT THAT THIS RELEASE SHALL BE GIVEN FULL FORCE AND EFFECT ACCORDING TO EACH AND ALL OF ITS EXPRESS TERMS AND PROVISIONS, INCLUDING, WITHOUT LIMITATION, THOSE RELATING TO THE RELEASE OF UNKNOWN AND UNSUSPECTED CLAIMS, DEMANDS, AND CAUSES OF ACTION.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream's general release agreement includes a specific acknowledgment for franchisees located in California or those who are California residents. This acknowledgment requires the franchisee to represent that they have consulted with legal counsel before signing the release.
This provision is tied to California Civil Code Section 1542, which states that a general release does not cover claims the releasing party is unaware of, and which would have significantly altered their settlement had they been known. By acknowledging consultation with legal counsel, the franchisee confirms they understand the implications of waiving rights to unknown claims under California law.
For a prospective Cream franchisee in California, this means they must seek legal advice before executing the general release agreement. This requirement aims to ensure the franchisee is fully informed about the rights they are relinquishing. The franchisee must understand the release's meaning, including the effect of Section 1542 of the California Civil Code, and expressly consent to the release being given full force and effect.