Who benefits from the release provided to Bumper Man, besides the franchisor?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
t") between Franchisee and Bumper Man, Inc. ("Franchisor"). | |
- 1. Release by Franchisee and Guarantors. Franchisee and Guarantors, on behalf of themselves and their successors, heirs, personal representatives, executors, administrators, personal representatives, agents, contractors, assigns, partners, shareholders, members, directors, officers, members, principals, employees, parents, subsidiaries, and affiliated entities, (collectively "Releasors") freely and without any influence forever release Franchisor, its parent, subsidiaries and affiliates and their respective past and present officers, directors, shareholders, agents and employees, in their corporate and individual capacities (collectively, the "Released Parties"), from any and all claims, demands, liabilities and causes of action of whatever kind or nature, whether known or unknown, vested or contingent, suspected or unsuspected (collectively "Claims"), that Releasors ever owned or held, now own or hold or may in the future own or hold, including, without limitation, claims arising under federal, state and local laws, rules and ordinances, claims for contribution, indemnity and/or subrogation, and claims arising out of, or relating to the Franchise Agreement and all other agreements between Franchisee and/or any Guarantor and any Released Parties, arising out of, or relating to any act, omission or event occurring on or before the date of this Release, unless prohibited by applicable law.
- 2. Risk of Changed Facts. Franchisee and Guarantors understand that the facts in respect of which the Release in Section 1 above is given may turn out to be different from the facts now known or believed by them to be true.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the release provided by the franchisee and any guarantors benefits not only Bumper Man, Inc. (the Franchisor), but also a wide range of related parties. These include Bumper Man's parent company, subsidiaries, and affiliates, as well as their respective past and present officers, directors, shareholders, agents, and employees, in both their corporate and individual capacities. These individuals and entities are collectively referred to as the "Released Parties."
This means that the release extends beyond just the franchisor as a corporate entity to protect the individuals who work for and manage Bumper Man, along with related business entities. This broad protection is typical in franchise agreements, as it aims to prevent franchisees from pursuing legal action against anyone associated with the franchise system. The release covers a wide array of potential claims, encompassing known and unknown issues, as well as those arising from various laws, rules, ordinances, and agreements related to the franchise.
Furthermore, the release extends to the successors, assigns, heirs, and personal representatives of both Bumper Man and the franchisee (referred to as "Releasors"). This ensures that the terms of the release remain in effect even if ownership or management of either the franchise or the franchisor changes. However, it's important to note that this release of claims does not apply to claims arising under the Franchise Investment Protection Act in Washington state, highlighting a specific legal exception.
In essence, this comprehensive release aims to provide Bumper Man and its associated parties with broad protection from potential legal claims by the franchisee, fostering a stable and predictable business relationship. Prospective franchisees should carefully review the scope of this release with legal counsel to fully understand its implications before signing the Franchise Agreement.