What is the effect of the 'No Prior Assignment' provision in the Bumper Man General Release?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- **3.
No Prior Assignment.** Franchisee and Guarantors represent and warrant that the Releasors are the sole owners of all Claims and rights released hereunder and that Releasors have not assigned or transferred, or purported to assign or transfer, to any person or entity, any Claim released under Section 1 above.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to the 2025 Bumper Man FDD, the 'No Prior Assignment' provision within the General Release stipulates that franchisees and guarantors confirm they are the exclusive owners of all claims and rights being released. This means they haven't previously assigned or transferred any of these claims to another party.
In practical terms, this provision ensures that Bumper Man is dealing directly with the individuals who possess the rights to make claims against them. It prevents a third party, who might have acquired a claim from the franchisee, from later pursuing legal action against Bumper Man based on the same issues covered in the release.
The franchisee and guarantors are warranting that they have not sold or given away any of their rights to sue Bumper Man. If it turns out that they did assign those rights, it could potentially invalidate the release, exposing the franchisor to legal claims they thought were settled. This clause protects Bumper Man from dealing with unknown third-party claimants and ensures the release is comprehensive and binding.
This type of provision is standard in general releases to confirm that the releasing party has the legal authority to release the claims. Prospective Bumper Man franchisees should carefully review the General Release and understand the implications of this representation, ensuring they have not transferred any rights related to potential claims against the franchisor.