What is the specific action or request that triggers the need for a franchisee release to Red Wagon Club?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
WAGON CLUB FRANCHISE, LLC**
GRANT OF FRANCHISOR CONSENT AND FRANCHISEE RELEASE
| franchisee, | ("you" or "your"), currently are parties to a certain Franchise Agreement |
|---|---|
| (the "Franchise Agreement") dated | , 20 . You have asked us to take the |
| following action or to agree to the following request: | |
| . We have the right under the Franchise Agreement to obtain a general release from you and your owners as a condition of taking this action or agreeing to this request. Therefore, we are willing to take the action or agree to the request specified above if you and your owners give us the release and covenant not to sue provided below in this document. You and your owners are willing to give us the release and covenant not to sue provided below as partial consideration for our | |
| willingness to take the action or agree to the request described above. |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–31)
What This Means (2024 FDD)
According to the 2024 Red Wagon Club Franchise Disclosure Document, a franchisee's request for a specific action or agreement from Red Wagon Club triggers the need for a general release. Red Wagon Club retains the right to obtain a general release from the franchisee and their owners as a condition of fulfilling the franchisee's request. This release involves the franchisee and their owners agreeing not to sue Red Wagon Club.
In essence, if a Red Wagon Club franchisee seeks a particular accommodation or action from the franchisor that falls outside the standard obligations outlined in the Franchise Agreement, Red Wagon Club can require the franchisee to sign a release. This protects Red Wagon Club from potential legal claims arising from the action or agreement they are being asked to undertake. The franchisee's willingness to provide this release acts as consideration for Red Wagon Club's agreement to the franchisee's request.
This requirement for a release is included in Exhibit F, a sample general release form included in the FDD. The release includes a waiver of rights or benefits conferred by the provisions of Section 1542 of the California Civil Code. The franchisee acknowledges that they have consulted with legal counsel before executing the release and that they understand its meaning, including the effect of Section 1542 of the California Civil Code, and expressly consent that this release shall be given full force and effect according to each and all of its express terms and provisions, including, without limitation, those relating to the release of unknown and unsuspected claims, demands, and causes of action.
However, if the Red Wagon Club franchise is located in Washington, any general release provided does not apply to any liability under the Washington Franchise Investment Protection Act RCW 19.100, and the rules adopted thereunder. This ensures that franchisees in Washington retain their rights under state franchise law, regardless of any general release they may have signed.