What does the Spray Net General Release form say about the Releasors' covenant?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
ET INC. FRANCHISE DISCLOSURE DOCUMENT**
SAMPLE RELEASE AGREEMENT
SAMPLE FORM OF GENERAL RELEASE
| , 20 | "Effective | Date") | and | between | Spray-Net | Inc. | ("Franchisor") | and | |-----------------------------------------------------------------------------|------------|--------------|-----|-------------|-----------|------|-------------------------------------|----------| | (the | | by | | | | | | | | ("Franchisee"). | | | | WITNESSETH: | | | | | | WHEREAS, Franchisor and Franchisee are parties to a | | | | | | | franchise agreement (the "Franchise | | | Agreement") dated, 20, granting Franchisee the right to operate a Spray-Net | | | | | | | | business | | under Franchisor's proprietary marks and system at the following location: | | | | | | | | | | | | | | | | | | | NOW THEREFORE, in consideration of the mutual covenants and conditions contained in this Release, and other good and valuable consideration, receipt of which is hereby acknowledged by each of the parties hereto, the parties hereto agree as follows:
Franchisee, for itself and its successors, predecessors, assigns, beneficiaries, executors, trustees, agents, representatives, employees, officers, directors, shareholders, partners, members, subsidiaries and affiliates (jointly and severally, the "Releasors"), irrevocably and absolutely releases and forever discharges Franchisor and its successors, predecessors, assigns, beneficiaries, executors, trustees, agents, representatives, employees, officers, directors, shareholders, partners, members, subsidiaries and affiliates (jointly and severally, the "Releasees"), of and from all claims, obligations, actions or causes of action (however denominated), whether in law or in equity, and whether known or unknown, present or contingent, for any injury, damage, or loss whatsoever arising from any acts or occurrences occurring as of or prior to the date of this Release relating to the Franchise Agreement, the business operated under the Franchise Agreement, and/or any other agreement between any of the Releasees and any of the Releasors. The Relea
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the Releasors (which include the franchisee and related parties) covenant not to sue or otherwise bring a claim against the Releasees (Spray Net and its related parties) regarding any of the claims being released under the General Release. This means the franchisee agrees not to initiate any legal action against Spray Net for any claims covered by the release. The release is intended to be a full and unconditional general release, extending to all claims of any nature, whether known, expected, or anticipated to exist.
The General Release also includes an acknowledgment by the Releasors that they are familiar with Section 1542 of the California Civil Code. This section states that a general release does not extend to claims which the creditor (Releasor) does not know or suspect to exist at the time of executing the release, and which, if known, would have materially affected the settlement with the debtor (Releasee). In simpler terms, if the franchisee is unaware of a claim when signing the release, the release might not cover that specific claim.
However, the document also states that the Releasors specifically waive all rights under Section 1542 of the California Civil Code or any similar law in other jurisdictions. This waiver means that the franchisee is giving up their right to later claim that the release does not apply to unknown claims. The release does not apply to any liability under the Maryland Franchise Registration and Disclosure Law or claims arising under the Washington Franchise Investment Protection Act. The Releasors also acknowledge that they have read, fully understand, and voluntarily accept the terms of the release without coercion.
Prospective Spray Net franchisees should carefully review the General Release with legal counsel to fully understand the scope of the claims being released and the implications of waiving rights under Section 1542 of the California Civil Code. Franchisees should also be aware of the exceptions for claims arising under the franchise laws of Maryland and Washington.