Does the Bumper Man Franchisee Disclosure Questionnaire act as a release of liability under the Maryland Franchise Registration and Disclosure Law?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
s termination upon bankruptcy may not be enforceable under federal bankruptcy law (11 U.S.C. Section 101 et seq.).
b. Any provision requiring you to sign a general release of claims against us, including upon execution of the Franchise Agreement or a successor franchise
agreement or transfer, does not release any claim you may have under the Maryland Franchise Registration and Disclosure Law.
c. A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise.
d. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
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Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the Franchisee Disclosure Questionnaire does not act as a release of liability under the Maryland Franchise Registration and Disclosure Law. Specifically, the document states that any representations requiring prospective franchisees to assent to a release, estoppel, or waiver of liability are not intended to, nor shall they act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. This ensures that franchisees retain their rights and protections under Maryland law, regardless of any statements made in the questionnaire.
This provision is crucial for prospective Bumper Man franchisees in Maryland because it prevents the franchisor from using the questionnaire to circumvent the legal protections afforded by Maryland's franchise laws. Franchisees cannot inadvertently waive their rights through the questionnaire. This protection is particularly important in the context of franchise agreements, which can often be complex and may contain provisions that could be interpreted as limiting a franchisee's legal recourse.
Furthermore, the FDD explicitly advises potential franchisees in Maryland not to sign the Bumper Man, Inc. Summary of Acknowledgments and Franchisee Questionnaire if they are residents of Maryland or if the business is to be operated in Maryland. This instruction reinforces the intent to ensure that Maryland franchisees are not bound by clauses that might compromise their rights under state law. This measure is in place to protect franchisees from unknowingly relinquishing their rights and to ensure compliance with Maryland's franchise regulations.
In summary, Bumper Man takes measures to ensure compliance with state franchise laws, particularly in states like Maryland, by explicitly stating that the Franchisee Disclosure Questionnaire does not act as a release of liability and advising Maryland residents or businesses operating in Maryland against signing the questionnaire. This approach aligns with the broader goal of protecting franchisees' rights and ensuring transparency in the franchise relationship.