What is the franchisee prohibited from doing regarding legal proceedings against Bumper Man related to released claims?

According to the 2025 Bumper Man FDD, franchisees and their guarantors agree to a covenant not to sue. This means they cannot initiate, prosecute, encourage, assist, or participate in any civil, criminal, or administrative proceeding or investigation against Bumper Man or related parties concerning any claim they have released. This prohibition extends to actions in any court, agency, or other forum, whether pursued affirmatively or as a defense or counterclaim.

This covenant is part of a general release that franchisees and guarantors execute as a condition of transferring or renewing their Franchise Agreement with Bumper Man. The release covers all known and unknown claims arising on or before the date of the release, unless prohibited by applicable law. This includes claims against Bumper Man, its parent company, subsidiaries, affiliates, and their respective officers, directors, shareholders, agents, and employees.

The FDD specifies that this release serves as a complete defense against any claim released and that Bumper Man can seek an injunction to prevent or stop any such claim from being asserted. However, this release of claims does not apply to claims arising under the Franchise Investment Protection Act in Washington state.

It's important to note that certain states, including California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin, have laws that may prevent the franchisee from waiving certain claims or disclaiming reliance on statements made by Bumper Man. Franchisees in these states should carefully review the state-specific addenda to the FDD for further details.