What is the Releasor releasing DL Franchising, LLC from in the Deka Lash franchise agreement?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
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)
According to the 2024 Deka Lash Franchise Disclosure Document, the franchisee is required to release DL Franchising, LLC 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 or the Deka Lash studio. This release is a condition for Deka Lash extending the franchisee the right to open a Deka Lash studio.
This release given by the franchisee covers DL Franchising, LLC and its related parties, including parents, affiliates, successors, 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 or studio 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.
The Franchise Disclosure Document also states that the franchisee waives any rights conferred by 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 includes a waiver of provisions similar to California Civil Code Section 1542, ensuring the release is comprehensive, even for unknown claims. However, this waiver may not apply to franchisees in California.