What claims are released by the Deer Solution franchisee when executing the General Release?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
Any general release as a condition of renewal, termination or transfer will be void with respect to claims under the Rhode Island Franchise Investment Act.
A requirement that you assent to a release, assignment, novation, waiver, or estoppel that deprives you of rights and protections provided in this act.
This shall not preclude you, after entering into a Franchise Agreement, from settling any and all claims.
Item 17 shall not provide for a prospective general release of claims against us that may be subject to the Minnesota Franchise Law.
No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor.
This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, the scope of the general release required from franchisees upon renewal, sale, assignment, or transfer of the franchise agreement is subject to certain state-specific limitations. In Maryland, the general release does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. Similarly, in Rhode Island, any general release as a condition of renewal, termination, or transfer will be void with respect to claims under the Rhode Island Franchise Investment Act.
In Michigan, the FDD states that a requirement that you assent to a release, assignment, novation, waiver, or estoppel that deprives you of rights and protections provided in this act is void and cannot be enforced against you. However, after entering into a Franchise Agreement, settling any and all claims is allowed. For franchises governed by Minnesota law, Item 17 of the Franchise Agreement will not provide for a prospective general release of claims against Deer Solution that may be subject to the Minnesota Franchise Law, as Minnesota Rule 2860.4400D prohibits a franchisor from requiring a franchisee to assent to a general release.
Furthermore, several states, including New York, Virginia, and Minnesota, have provisions stating that no statement, questionnaire, or acknowledgment signed by a franchisee in connection with the commencement of the franchise relationship shall waive any claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by Deer Solution or its representatives. These provisions supersede any other conflicting terms in the franchise documents. Therefore, while a general release may be part of the Deer Solution franchise agreement, its enforceability and scope are limited by these state-specific regulations designed to protect franchisees' rights.