Does the Bumper Man franchisee waive any claims related to the franchisor's leveraged buy-out?
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)
According to the 2025 Bumper Man FDD, a franchisee is required to execute a general release in a form satisfactory to Bumper Man, releasing the franchisor from any and all claims arising out of the operation of the Bumper Man business. However, this excludes claims related to the operation of the Bumper Man business by the franchisee or any principal that have not been expressly assumed by the transferee and its owners, and those claims which cannot be released under applicable law. This release is required as part of the transfer of the franchise.
This means that when a Bumper Man franchisee transfers their franchise to a new owner, they must sign a release that prevents them from suing Bumper Man over most issues related to their operation of the business. The release does not cover claims that the new owner assumes or claims that cannot be released under the law. This protects Bumper Man from potential legal issues with the former franchisee after the transfer is complete.
It is important to note that the FDD does not specifically mention claims related to a leveraged buyout. A prospective franchisee should seek clarification from Bumper Man regarding whether this general release extends to claims related to a leveraged buyout or any other specific financial restructuring of the company. Understanding the full scope of the release is crucial before signing any franchise agreement or transfer documents.