Are there any exceptions to the general release of claims required for Cream franchise renewal?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
documents and guaranties we then use to grant franchises for Jeni's Ice Creams Scoop Shops (modified as necessary to reflect the fact that it is for a renewal franchise), which may contain provisions that differ materially from those contained in this Agreement, including changes to your Royalty, Brand Fund Contribution, and Protected Territory;
- (8) you and your owners agree to sign, in a form satisfactory to us, a general release of any and all claims (except for claims which cannot be released or waived pursuant to an applicable franchise statute) against us and our owners, affiliates, officers, directors, employees, agents, successors, and assigns; and
(9) we are then-offering franchises for Jeni's Ice Creams Scoop Shops in your geographic market.
You acknowledge that we are not required to offer you a renewal franchise if you and/or your owners fail to meet the conditions set forth in this Section, regardless of whether we had or chose to exercise the right to terminate this Agreement during the Term under Section 14.C.
B.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, as a condition of franchise renewal, Cream requires franchisees and their owners to sign a general release of claims against Cream and its affiliates. However, there are exceptions to this requirement in certain jurisdictions. Specifically, the general release does not apply to claims that cannot be released or waived under applicable franchise statutes.
In Maryland, any release required as a condition of renewal will not apply to claims or liability arising under the Maryland Franchise Registration and Disclosure Law. Furthermore, franchisees in Maryland have the right to bring suit in Maryland for claims arising under this law, and any such claims must be brought within 3 years after the grant of the franchise.
Similarly, in Minnesota, any release required as a condition of renewal or transfer/assignment will not apply to the extent prohibited by Governing Law with respect to claims arising under Minn. Rule 2860.4400D. Additionally, no action may be commenced in Minnesota more than three years after the cause of action accrues, in compliance with Minnesota Statute 80C.17 Subd. 5. These exceptions ensure that franchisees in Maryland and Minnesota retain their rights under state franchise laws, even when signing a general release for renewal or transfer.