What is the purpose of the Spray Net General Release form?
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, the General Release form serves as a waiver of certain claims a franchisee may have against Spray Net. By signing this release, the franchisee agrees to waive rights or claims against the franchisor. However, the FDD stipulates some limitations and exceptions to this general release, particularly concerning certain state laws.
Specifically, the document mentions that a general release does not extend to claims that the creditor (franchisee) is unaware of at the time of signing the release, and which would have materially affected the settlement had they been known. Furthermore, the release includes a waiver of rights under Section 1542 of the California Civil Code or similar laws in other jurisdictions. However, the release explicitly does not apply to any liability under the Maryland Franchise Registration and Disclosure Law or claims arising under the Washington Franchise Investment Protection Act.
Several states, including Maryland, Minnesota, and potentially others, have specific addenda that modify or limit the enforceability of general releases required by Spray Net. For example, Maryland addenda state that the general release required for renewal, sale, or transfer does not apply to liabilities under the Maryland Franchise Law. Similarly, Minnesota law prohibits Spray Net from requiring litigation to be conducted outside of Minnesota or requiring a waiver of a jury trial. Prospective franchisees should carefully review any state-specific addenda to understand how these releases may be limited in their jurisdiction.
It is important for a prospective Spray Net franchisee to carefully review the General Release and any state-specific addenda with legal counsel to fully understand their rights and obligations. The franchisee should be aware of what claims they are waiving and what protections they retain under applicable state laws. This is especially crucial in states like Maryland, Minnesota, and Washington, where specific franchise laws provide additional protections.