What is the purpose of the General Release included as Exhibit 5 to the Deer Solution Franchise Agreement?

According to the 2025 Deer Solution Franchise Disclosure Document, Exhibit 5 is a General Release. The FDD mentions that the General Release may be required as a condition for assignment, sale, or transfer of the franchise. This suggests that Deer Solution may require franchisees to sign a release of claims when they sell or transfer their franchise to a new owner.

The inclusion of a general release is a fairly common practice in franchising. It protects Deer Solution from potential future claims by the outgoing franchisee related to the franchise agreement or the operation of the business. By signing the release, the franchisee typically agrees to waive any rights to sue Deer Solution.

However, the FDD also notes that individual state law may supersede the requirement to execute a general release. This means that in some states, a franchisee may not be required to sign a general release as a condition of selling or transferring their franchise. Prospective franchisees should carefully review Exhibit H, the State Specific Addenda, to determine if the general release requirement is affected by the laws of their state. It would be prudent to consult with a legal professional to understand the implications of signing such a release and how it may impact their rights.