Does the Exit franchise agreement receipt waive claims related to the acceptance of security, credit extensions, amendments, modifications, consents, or waivers related to the Franchise Agreement?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
By executing this Agreement, Franchisee, individually and on behalf of Franchisee's heirs, legal representatives, successors, and assigns, and each assignee of this Agreement by accepting assignment of the same, hereby forever releases and discharges EXIT, Subfranchisor, and their respective officers, directors, employees, agents and servants, and their subsidiary and affiliated corporations, their respective officers, directors, employees, agents and servants, from any and all claims relating to or arising under any franchise agreement or any other agreement between the parties and executed prior to the date of this Agreement including but not limited to any and all claims, whether presently known or unknown, suspected or unsuspected.
30. LIMITATION OF ACTIONS
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the franchise agreement includes a general release of prior claims. Specifically, by executing the agreement, the franchisee releases Exit and its related parties from any claims arising under prior agreements. However, this release does not explicitly address whether the receipt of the franchise agreement waives claims related to the acceptance of security, credit extensions, amendments, modifications, consents, or waivers related to the Franchise Agreement.
The Exit franchise agreement also states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor. This provision supersedes any other term in any document executed in connection with the franchise.
Additionally, the Exit franchise agreement specifies that any waiver of terms must be in writing and executed by both parties. A waiver of rights due to a breach of the agreement is not considered a continuing waiver of other breaches. Therefore, a prospective franchisee should clarify with Exit whether the general release extends to waiving claims related to specific actions like accepting security, credit extensions, amendments, modifications, consents, or waivers, as these are not explicitly mentioned in the release.