Who benefits from the Bumper Man General Release?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- **4.
Covenant Not to Sue.** Franchisee and Guarantors, on behalf of themselves and Releasors, covenant not to initiate, prosecute, encourage, assist, or (except as required by law) participate in any civil, criminal, or administrative proceeding or investigation in any court, agency, or other forum, either affirmatively or by way of cross-claim, defense, or counterclaim, against any person or entity released under Section 1 above with respect to any Claim released under Section 1 above.
- **5.
Complete Defense.** Franchisee and Guarantors: (i) acknowledge that this Release shall be a complete defense to any Claim released under Section 1 above; and (ii) consent to the entry of a temporary or permanent injunction to prevent or end the assertion of any such Claim.
- **6.
Successors and Assigns.** This Release will inure to the benefit of and bind the successor, assigns, heirs and personal representatives of Franchisor and each Releasor.
- 7. This Release of Claims does not apply to claims arising under the Franchise Investment Protection Act, chapter 19.100 RCW, or the rules adopted thereunder in accordance with RCW 19.100.220(2).
[The following is to be used only for California franchisees]
Acknowledgment of Releases under California Law. Each Party granting a release acknowledges a familiarity with Section 1542 of the Civil Code of the State of California, 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."
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, the General Release primarily benefits Bumper Man, Inc. (the Franchisor), its successors, and assigns. The release is executed by the franchisee and any guarantors as a condition of transferring or renewing the Franchise Agreement. By signing the release, the franchisee and guarantors agree not to initiate or participate in any legal proceedings against those released under the agreement, covering any claims released under Section 1 of the document. This includes a covenant not to sue, ensuring Bumper Man has a legal defense against potential claims.
Specifically, the General Release includes a covenant not to sue, preventing the franchisee and guarantors from initiating any legal actions against the released parties. This provides Bumper Man with a legal defense against potential claims and allows them to obtain injunctions to prevent such claims from being asserted. The release extends to the successors, assigns, heirs, and personal representatives of Bumper Man, ensuring long-term protection.
However, the release does not apply to claims arising under the Franchise Investment Protection Act in Washington state. Additionally, California franchisees retain certain rights under Section 1542 of the California Civil Code, acknowledging they may be giving up claims they are unaware of. This section requires a specific waiver to be effective, indicating that franchisees should be fully aware of the implications of the release before signing. Bumper Man must also modify the release as necessary to comply with state laws regulating franchising, ensuring that the release is enforceable and fair to both parties.