Can the release in the Dryer Vent Squad franchise agreement be changed orally?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
In recognition of the Washington State Franchise Investment Protection Act, Chapter 19.100 RCW, the parties to the attached DVS Holdings, Inc. Franchise Agreement (the "Franchise Agreement") agree as follows:
A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel.
MARYLAND FRANCHISE AGREEMENT AMENDMENT
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- The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
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- All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
Based on the 2024 Dryer Vent Squad Franchise Disclosure Document, the franchise agreement includes amendments specific to certain states like Washington and Maryland that address releases and waivers. In Washington, a release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act, except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. This suggests that changes to the release are only valid under specific conditions, including a negotiated settlement and independent legal representation.
In Maryland, the general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law. Additionally, all representations requiring prospective franchisees to assent to a release, estoppel, or waiver of liability are not intended to act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. These amendments indicate that the release cannot waive rights under Maryland franchise law.
While the FDD specifies conditions under which releases can be modified or are limited in scope in certain states, it does not explicitly state whether these changes can be made orally. Typically, franchise agreements and any amendments to them must be in writing to be enforceable, which is a common practice to ensure clarity and avoid disputes. A prospective Dryer Vent Squad franchisee should seek clarification from the franchisor regarding the permissibility and enforceability of oral modifications to the release or waiver clauses within the franchise agreement, especially considering the legal requirements in their specific state.