What claims are Releasors releasing Franchisor from in the Spray Net General Release?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing a release, which if known by him or her must have materially affected his or her settlement with the debtor.
Each of the Releasors hereby specifically and expressly waives all rights that it may have under Section 1542 of the California Civil Code or any similar provision of law in any other jurisdiction. This Release shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law. Releasors acknowledge and agree that they have read the terms of this Release, they fully understand and voluntarily accept the terms, and that they have entered into this Release voluntarily and without any coercion. This Release does not apply to claims that arise under the Washington Franchise Investment Protection Act, chapter 19.100 RCW, or the rules adopted thereunder in accordance with RCW 19.100.220.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, a general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing a release, which if known by him or her must have materially affected his or her settlement with the debtor. Each of the Releasors specifically and expressly waives all rights that it may have under Section 1542 of the California Civil Code or any similar provision of law in any other jurisdiction.
However, this release does not apply to any liability under the Maryland Franchise Registration and Disclosure Law, or to claims that arise under the Washington Franchise Investment Protection Act, chapter 19.100 RCW, or the rules adopted thereunder in accordance with RCW 19.100.220. Releasors acknowledge that they have read the terms of this Release, they fully understand and voluntarily accept the terms, and that they have entered into this Release voluntarily and without any coercion.
In essence, the general release aims to protect Spray Net from unforeseen future claims related to the franchise agreement, except for specific legal protections provided to franchisees under Maryland and Washington franchise laws. This means a franchisee is giving up their right to sue Spray Net for issues they aren't even aware of when signing the release, provided that knowledge of these issues would have significantly altered their decision to settle with Spray Net. This waiver is further emphasized by the explicit mention of waiving rights under California Civil Code Section 1542 or similar laws, which typically protect individuals from unknowingly releasing claims.