What is the effective date referenced 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.
[SIGNATURES ON FOLLOWING PAGE]
IN WITNESS WHEREOF, the parties hereto have executed this Release as of the Effective Date.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the General Release includes a space for the effective date. The document states, "IN WITNESS WHEREOF, the parties hereto have executed this Release as of the Effective Date." This indicates that the General Release is considered active from the date specified as the "Effective Date" when the parties involved sign the release.
For a prospective Spray Net franchisee, this means that the General Release becomes legally binding on the date entered as the Effective Date, signifying when the franchisee agrees to the terms outlined in the release. The franchisee should carefully consider the implications of the release before agreeing to it.
It is important to note that the General Release does not extend to claims that the releasor is unaware of at the time of execution, and that the releasor is waiving rights under Section 1542 of the California Civil Code or any similar law. The release also does not apply to any liability under the Maryland Franchise Registration and Disclosure Law or claims arising under the Washington Franchise Investment Protection Act.