Does the Zoomin Groomin release agreement cover claims arising after the date of the release?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- Release- Franchisee and all Franchises' guarantors, members, employees, agents, successors, assigns and affiliates fully and finally release and forever discharge Releasee, its past and present agents, employees, officers, directors, members, Area Representatives, Franchisees, successors, assigns and affiliates (collectively "Released Parties") from any and all claims, actions, causes of action, contractual rights, demands, damages, costs, loss of services, expenses and compensation which Area Representative could assert against Released Parties or any of them up through and including the date of this Release.
-
- THIS IS A SPECIFIC RELEASE GIVING UP ALL RIGHTS WITH RESPECT TO THE TRANSACTIONS OR OCCURRENCES THAT ARE BEING RELEASED UNDER THIS AGREEMENT.
-
- California Releasor- You represent and warrant that YOU EXPRESSLY WAIVE ANY AND ALL RIGHTS AND BENEFITS UNDER CALIFORNIA CIVIL CODE §1542, which provides as follows:
A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.
- This Release Agreement does not apply to any liabilities arising under the California Franchise Investment Law, the California Franchise Relations Act, Indiana Code § 23-2- 2.5.1 through 23-2-2.7-7, the Maryland Franchise Registration and Disclosure Law, Michigan Franchise Investment Law, Minnesota Franchise Act, North Dakota franchise laws, the Rhode Island Investment Act, and the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, or the rules adopted thereunder.
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin Franchise Disclosure Document, the release agreement that a franchisee signs releases Zoomin Groomin from claims up to and including the date of the release. Specifically, the franchisee releases Zoomin Groomin from any claims, actions, causes of action, contractual rights, demands, damages, costs, loss of services, expenses, and compensation that the franchisee could assert against Zoomin Groomin. This release is comprehensive, giving up all rights related to the transactions or occurrences being released under the agreement.
However, this release agreement does not apply to liabilities arising under specific state franchise laws, including those in California, Indiana, Maryland, Michigan, Minnesota, North Dakota, Rhode Island, and Washington. This means that even if a franchisee signs the release, they may still have rights and claims under these state laws.
Additionally, California franchisees expressly waive their rights under California Civil Code §1542, which pertains to claims unknown at the time of the release that would have materially affected the settlement. This waiver means that California franchisees are giving up their right to pursue claims they didn't know about when they signed the release, which could have significant implications if unknown issues arise later. Prospective franchisees should carefully consider the scope and implications of this release, especially concerning potential future claims or issues that may arise after the date of the release.