What parties are involved in the Spray Net General Release form?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
States Code. No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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- Deferral. Due to our financial condition, the Illinois Attorney General's Office requires that the payment of initial fees be deferred until franchisor has satisfied its pre-opening obligations to franchisee and the franchise is open for business.
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- Effective Date. This Rider is effective as of the Effective Date.
Agreed to by:
SPRAY-NET INC. ©2025 Spray-Net Inc.
SPRAY-NET INC. MARYLAND ADDENDUM TO THE FRANCHISE DISCLOSURE DOCUMENT
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
The following is added to Item 5:
Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement. In addition, all development fees and initial payments by area developers shall be deferred until the first franchise under the multi-unit development agreement opens.
The following is added to Item 17:
The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
You may bring an action under such law within three years after the grant of the franchise.
You have the right to file a lawsuit alleging a cause of action arising under the Maryland Franchise Law in any court of competent jurisdiction in the State of Maryland.
The Franchise Agreement provides for termination upon bankruptcy of the franchisee. This provision may not be enforceable under federal bankruptcy law.
SPRAY-NET INC. MARYLAND ADDENDUM TO THE FRANCHISE AGREEMENT
Under COMAR 02-02-08-16L, the general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Law.
Any provision of the Agreement which provides for a period of limitations for causes of action shall not apply to causes of action under the Maryland Franchise Law, Business Regulation Article, §14-227, Annotated Code of Maryland. Franchisee must bring an action under such law within three years after the grant of the franchise.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the parties involved in the general release form include the Releasors and Spray-Net Inc. The document includes a sample form of general release as Exhibit I. The agreement is made and agreed to by Spray-Net Inc.
The general release includes a waiver of rights under Section 1542 of the California Civil Code or any similar provision of law in any other jurisdiction. However, the release does not apply to any liability under the Maryland Franchise Registration and Disclosure Law or claims that arise under the Washington Franchise Investment Protection Act.
It is important for a prospective Spray Net franchisee to carefully review the general release and understand its implications, especially concerning rights and liabilities under franchise laws in their specific jurisdiction. Franchisees should seek legal counsel to fully understand the terms and conditions of the release before signing.