What does the Deka Lash Guaranty cover the franchisor against?
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."
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
Based on the 2024 Deka Lash Franchise Disclosure Document, Exhibit K outlines a general release that franchisees must sign, releasing DL Franchising, LLC and related parties from any and all claims, demands, actions, causes of action, debts, obligations, and liabilities, whether known or unknown, vested or contingent, arising out of or related to the Franchise Agreement(s) or the Deka Lash studio(s) governed by the Franchise Agreement(s). This release is required in consideration for Deka Lash extending the rights to open a studio.
The release extends to claims on behalf of the franchisee, their heirs, executors, administrators, successors, and assigns, and any other person claiming through or under them. 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.
The release applies to any transaction, event, or circumstance relating to the Franchise Agreement(s) or studio(s) on or before the date of the release but does not apply to claims based on future events occurring after the date of the release. Franchisees expressly waive rights conferred 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.
This means that Deka Lash seeks to protect itself from a wide range of potential legal claims that franchisees might bring, including those that are currently unknown. Prospective franchisees should carefully review this release with legal counsel to understand the full scope of what they are waiving before signing the Franchise Agreement.