What rights does the Franchisee waive in the Deka Lash Release?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
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, as a condition of signing the Franchise Agreement, franchisees are required to sign a general release, waiving certain rights. Specifically, the franchisee waives rights related to claims, known or unknown, that arise from the Franchise Agreement or the Deka Lash studio operations. This release benefits DL Franchising, LLC and its related parties, without Deka Lash providing a reciprocal release to the franchisee. This means Deka Lash is not required to give the franchisee a similar release of claims. The release extends to the franchisee, their heirs, and successors, and covers DL Franchising, LLC's parents, affiliates, officers, directors, shareholders, employees, agents, lawyers, and contractors.
The release applies to any events or circumstances linked to the Franchise Agreement or studio operations that occurred on or before the date the release is signed. However, it does not cover claims based on events that happen after the release date. The franchisee expressly waives rights under any statute or rule of law that states a release does not apply to claims the claimant is unaware of at the time of signing, which, if known, could have significantly affected their settlement with the released party.
For franchisees outside of California, this includes waiving provisions similar to California Civil Code Section 1542. This section specifies that a general release does not extend to claims that the releasing party doesn't know or suspect to exist at the time of signing the release, and that, if known, would have materially affected the settlement. In essence, franchisees are giving up their right to sue Deka Lash for issues they may not even be aware of when they sign the agreement, which could have significant implications if unforeseen problems arise later.