Can Dryject require a general release of claims as part of a settlement of a dispute with an Indiana franchisee?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
The franchise agreement requires you to sign a general release of claims as a condition of renewing or transferring the franchise. Under the law of Indiana any provision that purports to bind a person acquiring a franchise to waive compliance with the franchise laws of Indiana is void. Item 17 of the Disclosure Document, Sections (c) (renewal) and (m) (transfer), is amended to omit the requirements that an Indiana Franchisee sign a general release of claims as a condition of renewal or transfer. This will not prevent Franchisor from requiring you to sign a general release of claims as part of a settlement of a dispute.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the addendum for the state of Indiana clarifies the use of general releases. While the standard franchise agreement might require a franchisee to sign a general release of claims when renewing or transferring their franchise, Indiana law voids any provision that forces a franchisee to waive compliance with Indiana's franchise laws.
However, the FDD specifies that this restriction does not prevent Dryject from requiring a franchisee to sign a general release of claims as part of settling a dispute. This means that if a disagreement arises between Dryject and an Indiana franchisee, and they reach a settlement, Dryject can include a clause in the settlement agreement that requires the franchisee to release all claims against the company as part of the resolution.
In practical terms, an Indiana franchisee should understand that while they cannot be forced to sign a general release to renew or transfer their franchise, they may be required to do so if they settle a dispute with Dryject. This is a common practice, as it provides both parties with closure and prevents future litigation related to the settled issue. Franchisees should seek legal counsel before signing any settlement agreement to fully understand the implications of releasing all claims.