Is the execution of the Bumper Man General Release a condition for transfer of the Franchise Agreement?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS GENERAL RELEASE ("Release") is executed on | by |
|---|---|
| ("Franchisee") and ("Guarantors") as a | |
| condition of transfer or renewal of the Franchise Agreement dated ("Franchise | |
| Agreement") between Franchisee and Bumper Man, Inc. ("Franchisor"). |
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, the execution of a General Release is required for the transfer of a franchise. The FDD specifies that the General Release must be executed by the franchisee and any guarantors as a condition for the transfer of the Franchise Agreement.
This means that if a franchisee wants to sell or transfer their Bumper Man franchise to someone else, they, along with any guarantors, must sign a General Release. This release likely involves waiving certain rights or claims against Bumper Man, Inc. as part of the transfer process.
However, the FDD also notes that in certain states like California and Washington, there are limitations on waivers and releases. Specifically, California Corporations Code §31512 voids a waiver of rights under the Franchise Investment Law and Business and Professions Code §20010 voids a waiver of rights under the Franchise Relations Act. Similarly, in Washington, a release or waiver of rights is void except under specific conditions, such as a negotiated settlement with independent counsel. Therefore, the enforceability of the General Release may depend on the franchisee's location and the specific laws of that state.
Prospective franchisees should carefully review the General Release and understand what rights they are waiving before signing it. They should also consult with an attorney to determine the enforceability of the release in their state and to ensure they are not giving up any important legal rights.