What is the effect of differences in facts discovered after the execution of the Marble Slab Creamery General Release?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
YOU MUST SIGN A GENERAL RELEASE IF YOU RENEW OR TRANSFER YOUR FRANCHISE. CALIFORNIA CORPORATIONS CODE SECTION 31512 VOIDS A WAIVER OF YOUR RIGHTS UNDER THE FRANCHISE INVESTMENT LAW (CALIFORNIA CORPORATIONS CODE SECTIONS 31000 THROUGH 31505). BUSINESS AND PROFESSIONS CODE SECTION 20010 VOIDS A WAIVER OF YOUR RIGHTS UNDER THE FRANCHISE RELATIONS ACT (BUSINESS AND PROFESSIONS CODE SECTIONS 20000 THROUGH 20043).
Source: Item 23 — RECEIPT (FDD pages 101–346)
What This Means (2025 FDD)
According to the 2025 Marble Slab Creamery FDD, the effect of differences in facts discovered after the execution of the General Release varies by state. In California, California Corporations Code Section 31512 voids a waiver of rights under the Franchise Investment Law (California Corporations Code Sections 31000 through 31505), and Business and Professions Code Section 20010 voids a waiver of rights under the Franchise Relations Act (Business and Professions Code Sections 20000 through 20043). This means that even if a franchisee signs a general release upon renewal or transfer, they do not waive their rights under these California laws.
For Marble Slab Creamery franchisees in Maryland, the addendum to the franchise agreement specifies that any release required as a condition of assignment or renewal will not apply to liability under the Maryland Franchise Registration and Disclosure Law. Additionally, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by the franchisor. This provision supersedes any other term in any document executed in connection with the franchise.
In Illinois, the addendum to the Multi-Unit Restaurant Agreement states that any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of the state is void. However, this does not prevent a person from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit filed under the provisions of the Act, nor does it prevent the arbitration of any claim pursuant to the provisions of Title 9 of the United States Code or Illinois Regulations at Section 200.609. Therefore, franchisees should be aware of the specific state laws that protect their rights, regardless of any general release they may sign.