Does the Bumper Man franchisee waive any claims related to the franchisor's acquisition of other entities?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
(vii) Franchisee (and its Principal(s) if Franchisee is an Entity) and Franchisor have executed a general release, in a form satisfactory to Franchisor, releasing Franchisor Indemnitees from any and all claims arising out of the operation of the Bumper Business, excluding claims related to the operation of the Bumper Business by Franchisee or any Principal which have not been expressly assumed by the transferee and its owners and those claims which cannot be released under Applicable Law.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
Based on the 2025 Bumper Man Franchise Disclosure Document, a franchisee transferring their franchise must execute a general release, satisfactory to Bumper Man, that releases the franchisor from claims arising out of the Bumper Business operation. However, this excludes claims related to the franchisee's or any principal's operation of the Bumper Business that the transferee has not expressly assumed, and those claims which cannot be released under applicable law.
This means that when a Bumper Man franchisee sells their franchise, they generally must sign a release preventing them from suing Bumper Man over issues related to their operation of the business. The release does not extend to liabilities the new owner agrees to take on, nor does it require the franchisee to waive any legal rights that cannot be waived under the law.
It is important for a prospective Bumper Man franchisee to understand the scope of this release. While the FDD does not specifically address claims related to the franchisor's acquisition of other entities, the general release could potentially extend to such claims if they arise out of the franchisee's operation of the Bumper Business. A franchisee should seek legal counsel to fully understand the implications of this release before signing the Franchise Agreement.