Under what circumstances does the Spray Net General Release form not apply?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Releasors, and each of them, also covenant not to sue or otherwise bring a claim against any of the Releasees regarding any of the claims being released under this Release. Releasors hereby acknowledge that this release is intended to be a full and unconditional general release, as that phrase is used and commonly interpreted, extending to all claims of any nature, whether or not known, expected or anticipated to exist.
Each of the Releasors expressly acknowledges that they are familiar with the provisions of Section 1542 of the California Civil Code which provides as follows:
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.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, there are specific circumstances and jurisdictions where the general release form does not apply, offering franchisees certain protections. In Maryland, the general release required for renewal, sale, or assignment/transfer does not apply to any liability under the Maryland Franchise Law. This means a franchisee in Maryland retains the right to pursue claims under Maryland franchise law, even after signing a general release. Furthermore, any provision in the agreement that sets a limitation period for causes of action does not apply to causes of action under the Maryland Franchise Law.
In Minnesota, Spray Net is prohibited from requiring a franchisee to agree to a general release. This provides significant protection to franchisees in Minnesota, ensuring they do not waive their rights to pursue legal claims against the franchisor. Additionally, Minnesota law ensures that franchisees retain their rights to use Spray Net's trademarks and service marks, and the franchisor must protect these rights or indemnify the franchisee against any related claims.
Beyond these specific state laws, a general release does not extend to claims that the creditor (releasor) is unaware of at the time of executing the release, especially if knowledge of such claims would have significantly affected the settlement with the debtor. This clause protects franchisees from unknowingly waiving rights to claims they were not aware of when signing the release. These stipulations ensure that franchisees are not inadvertently forfeiting legal rights and provide avenues for recourse in specific situations.