In the event of a transfer, what form does the release from claims against Deka Lash need to be?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
The individuals or entities that have signed this general release (the "Release") agree as follows:
- As required by the executed Deka Lash Franchise Agreement(s), and in consideration for DL Franchising's willingness to extend our rights to open a Deka Lash studio, we hereby release DL Franchising, LLC and Related Parties (as defined below) from any and all claims, demands, actions, causes of action, debts, obligations, and liabilities, whether known or unknown, vested or contingent today (collectively, "Claims") arising out of or related to the Franchise Agreement(s) or the Deka Lash studio(s) governed by the Franchise Agreement(s). We acknowledge that DL Franchising is not required to give us, and is not giving us, a reciprocal release.
We give this Release on behalf of ourselves, our heirs, executors, administrators, successors and assigns, and any other person claiming through or under us. The "Related Parties" covered by this Release include all parents and affiliates of DL Franchising, LLC, as well as its successors and assigns, and all past and present officers, directors, shareholders, employees, agents, lawyers, and contractors.
This Release applies to any transaction, event, or circumstance relating to the Franchise Agreement(s) or studio(s) on or before the date of this Release. This Release does not apply to claims based on future events occurring after the date of this Release.
Franchisee hereby expressly waives any and all rights conferred upon Franchisee by any statute or rule of law which provides that a release does not extend to claims which the claimant does not know or suspect to exist in its favor at the time of executing the release, which if known by it might have materially affected its settlement with the released party, including without limitation provisions of the California Civil Code Section 1542, which provides:
"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE REELASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RLEASE PARTY."
[FOR FRANCHISEES OUTSIDE CALIFORNIA]
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, a general release is required as part of the franchise agreement. This release must be signed by individuals or entities seeking to transfer their rights to open a Deka Lash studio. By signing, they release DL Franchising, LLC, and its related parties from any and all claims, demands, actions, causes of action, debts, obligations, and liabilities arising from the Franchise Agreement or the Deka Lash studio.
The release extends to both known and unknown claims that exist up to the date of the release, covering any transaction, event, or circumstance related to the Franchise Agreement or studio. However, it does not apply to claims based on future events occurring after the release date. This means that franchisees are waiving their rights to sue Deka Lash for anything that has happened up to the point of signing the release, but they retain the right to make claims for future issues.
The document also specifies that the franchisee waives rights conferred by any statute or rule of law that states a release does not extend to claims which the claimant does not know or suspect to exist in their favor at the time of executing the release. This includes a specific reference to California Civil Code Section 1542. This waiver is significant because it means franchisees are giving up their right to claim they didn't know about something at the time of the release.
It is important for potential franchisees to carefully review the release with legal counsel to fully understand the implications of waiving these rights before signing the Deka Lash Franchise Agreement. The franchisee acknowledges that Deka Lash is not providing a reciprocal release, meaning Deka Lash is not releasing the franchisee from any claims it may have.