What is the purpose of Exhibit 8, the General Release, in the Mrcool Franchise Agreement?

Based on the 2025 Mrcool Franchise Disclosure Document, a general release required as a condition of renewal, sale, and/or assignment or transfer of a Franchise Agreement does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This means that while Mrcool may require a franchisee to sign a general release when renewing, selling, assigning, or transferring their franchise, this release cannot waive any rights or protections afforded to the franchisee under Maryland law.

Amendments to the Mrcool Franchise Agreement for New York also address similar concerns. Specifically, the New York amendment ensures that all rights and causes of action arising in favor of the franchisee from the provisions of New York General Business Law Sections 680-695 and the regulations issued thereunder, remain in force. This is to satisfy the non-waiver provisions of N.Y. Gen. Bus. Law Sections 687.4 and 687.5.

Similarly, the Michigan FDD Amendment states that a requirement that you assent to a release, assignment, novation, waiver, or estoppel that deprives you of rights and protections provided in this act is void and cannot be enforced against you. However, this does not preclude a franchisee, after entering into a Franchise Agreement, from settling any and all claims.

These amendments highlight Mrcool's acknowledgment of state laws designed to protect franchisees, ensuring that franchisees do not unknowingly waive their legal rights through general releases or other contractual provisions. Prospective franchisees should carefully review these state-specific amendments and consult with legal counsel to fully understand their rights and obligations.