What is the implication of Business and Professions Code 20010 for Ledgers franchisees who sign a general release?

According to Ledgers' 2025 Franchise Disclosure Document, California Business and Professions Code 20010 protects franchisees' rights under the Franchise Relations Act (Business and Professions Code 20000 through 20043). This means that if a Ledgers franchisee in California signs a general release, they are not waiving their rights under the Franchise Relations Act, regardless of what the release might state. This protection is particularly relevant when renewing or transferring a franchise.

This provision ensures that Ledgers franchisees in California cannot inadvertently give up their legal protections under the Franchise Relations Act simply by signing a general release. The Franchise Relations Act covers various aspects of the franchise relationship, including termination, transfer, and non-renewal, so this protection is significant for franchisees.

Prospective Ledgers franchisees in California should be aware of this protection, as it means that any general release they sign will not waive their rights under the Franchise Relations Act. This provides an added layer of security and ensures that franchisees retain their legal rights even when signing releases for other purposes. It is advisable for franchisees to consult with legal counsel to fully understand their rights and the implications of any release they are asked to sign.