Is executing a general release of all claims against Ledgers a required action to renew my Ledgers franchise agreement?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
sonable prior notice to Landlord, enter the Leased Premises within 10 days of such expiration or termination, to remove signs and other material bearing Franchisor's brand name, trademarks, and commercial symbols, provided that Franchisor will be liable to Landlord for any damage Franchisor or its designee causes by such removal.
- No Liability. By executing this Rider, Franchisor does not assume any liability with respect to the Leased Premises or any obligation as Tenant under the Lease.
LANDLORD Tenant Signature: Name: Title: Date:
Schedule 5- Release
| THIS RELEASE is made and given by, | |
|---|---|
| ("Releasor") with reference to the following facts: | |
| 1. | Releasor and Loyalty Business Services LLC doing business as Ledgers |
| ("Releasee") are | |
| parties to one or more Franchise | |
| Agreements. | |
| 2. | The following consideration is given: |
| the execution by Releasor of a successor Franchise Agreement | |
| or other renewal | |
| documents renewing the franchise (the "Franchise"); or | |
| Releasor's consent to Releasee's transfer of its rights and duties under the | |
| Franchise Agreement; or | |
| Releasor's consent to Releasee's assumption of rights and duties under the | |
| Franchise Agreement; or | |
| [insert description] | |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, whether you must sign a general release to renew your franchise agreement depends on the specific circumstances, particularly if you are in California.
Specifically, the FDD states that Section 31125 of the California Corporation Code requires Ledgers to provide you with a disclosure document before asking you to agree to a material modification of an existing franchise. This implies that any requirement to sign a general release as part of a renewal would be considered a material modification, necessitating prior disclosure.
Additionally, the FDD indicates that in certain situations, such as when executing a successor Franchise Agreement or consenting to a transfer or assumption of rights and duties under the Franchise Agreement, a release may be required. However, the document also notes that statements or acknowledgments signed by a franchisee cannot waive claims under state franchise law or disclaim reliance on statements made by Ledgers. Therefore, while a general release might be part of the renewal process, its enforceability and the circumstances under which it is required can vary, especially in states like California with specific franchise laws.