For Engel & Volkers California franchisees, what Civil Code section are they waiving in this release?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- Waiver of Civil Code Section 1542. This Release is intended by Franchisee [and Owner] to be a full and unconditional general release and to constitute a full, unconditional and final accord and satisfaction, extending to all Claims of any nature, whether or not known, expected or anticipated to exist in favor of Franchisee [and Owner] against the Released Parties regardless of whether any unknown, unsuspected or unanticipated Claim would materially affect settlement and compromise of any matter mentioned herein. Franchisee [and Owner each] hereby expressly, voluntarily and knowingly waives, relinquishes and abandons each and every right, protection and benefit to which Franchisee [or Owner, as the case may be] would be entitled, now or at any time hereafter under Section 1542 of the Civil Code of the State of California, as well as under any other statutes or common law principles of similar effect to Section 1542, whether now or hereinafter existing under the laws of California, or any other applicable federal and state law with jurisdiction over the parties' relationship. Franchisee [and Owner each] acknowledges that Section 1542 of the Civil Code of the State of California provides as follows:
"A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor."
In making this voluntary express waiver, Franchisee [and Owner each] acknowledges that Claims or facts in addition to or different from those which are now known or believed to exist with respect to the matters mentioned herein may later be discovered and that it is the intention of Franchisee [and Owner, respectively] to hereby fully and forever settle and release any and all matters, regardless of the possibility of later discovered Claims or facts. This Release is and shall be and remain a full, complete and unconditional general release. Franchisee [and Owner each] acknowledges and agrees that the foregoing waiver of Section 1542 is an essential, integral and material term of this Release.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, California franchisees are waiving rights, protections, and benefits under Section 1542 of the Civil Code of the State of California. This waiver is part of a general release, which aims to constitute a full, unconditional, and final accord and satisfaction, extending to all claims, whether known, expected, or unanticipated. This waiver applies to both the franchisee and the owner.
The document further clarifies the content of Section 1542, stating that a general release does not extend to claims which the creditor does not know or suspect to exist at the time of executing the release, which if known, would have materially affected the settlement with the debtor. By waiving this section, Engel & Volkers franchisees acknowledge that additional claims or facts may later be discovered but agree to fully and forever settle all matters, regardless of such possibilities.
This waiver is an essential and integral term of the release. The franchisee acknowledges that they are making this waiver voluntarily and expressly. This means that even if a franchisee later discovers a claim they were unaware of at the time of signing the release, they will be unable to pursue legal action against Engel & Volkers for that claim.