What is the scope of the claims being released under 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 typically does not extend to claims that a releasor (franchisee) is unaware of at the time of signing the release, especially if knowledge of such claims would have significantly altered their decision to settle with the debtor (Spray Net). The franchisee specifically waives rights under Section 1542 of the California Civil Code or similar laws in other jurisdictions. However, the release does not apply to liabilities under the Maryland Franchise Registration and Disclosure Law or claims arising under the Washington Franchise Investment Protection Act. Franchisees must acknowledge that they have read, understood, and voluntarily accepted the release terms without coercion.
Several addenda modify the general release's scope in specific states. For Maryland franchisees, any general release required for renewal, sale, assignment, or transfer does not apply to liabilities under the Maryland Franchise Law. Franchisees in Maryland have three years from the franchise grant to bring an action under this law and retain the right to file lawsuits in Maryland courts regarding causes of action arising from the Maryland Franchise Law.
For Minnesota franchisees, the FDD states that Minnesota Rules prohibit Spray Net from requiring a franchisee to agree to a general release. The franchisor must also protect the franchisee's right to use trademarks and indemnify them against losses arising from claims related to trademark use. These stipulations ensure that franchisees in Maryland and Minnesota retain specific rights and protections, overriding any general release terms that might otherwise limit their ability to pursue claims against Spray Net under those states' franchise laws.