What does the Franchisee and Guarantors covenant not to do in the Bumper Man General Release?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
r, to any person or entity, any Claim released under Section 1 above.
- 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.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to the 2025 Bumper Man FDD, the General Release includes a covenant where the Franchisee and any Guarantors agree not to initiate or participate in any legal proceedings against the franchisor or related parties. Specifically, on behalf of themselves and their related parties, they covenant not to initiate, prosecute, encourage, assist, or participate in any civil, criminal, or administrative proceeding or investigation against any person or entity released under the terms of the General Release. This includes actions in any court, agency, or other forum, whether pursued affirmatively or as a defense or counterclaim.
This covenant means that franchisees and guarantors waive their right to sue Bumper Man for any claims covered by the release. This waiver extends to a broad range of legal actions, reinforcing the comprehensive nature of the release. The franchisee and guarantors also acknowledge that the General Release serves as a complete defense against any claim released within it. They consent to injunctive relief to prevent or stop any such claim from being asserted.
This section of the General Release 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). Additionally, California franchisees acknowledge that a general release does not extend to claims that the 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, would have materially affected his or her settlement with the debtor or released party.