factual

Does the Bumper Man franchisee waive any claims related to the franchisor's sale of assets?

Bumper_Man Franchise · 2025 FDD

Answer 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 Franchise Disclosure Document, a franchisee is required to execute a general release, satisfactory to Bumper Man, that releases the franchisor from any and all claims arising out of the operation of the Bumper Business. However, this excludes claims related to the operation of the Bumper 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 means that when transferring a franchise, the franchisee must sign a release that prevents them from suing Bumper Man over issues related to their operation of the franchise. However, the release does not cover claims that the new owner hasn't taken on, or claims that legally cannot be waived. This protects Bumper Man from future legal issues arising from the franchisee's past operations while allowing for certain liabilities to be transferred to the new owner if agreed upon.

It is important for a prospective franchisee to understand the scope of this release and to seek legal counsel to ensure they are not waiving any rights that they should retain. Additionally, the franchisee should clarify with Bumper Man what specific claims are not being released to ensure a clear understanding of their liabilities and protections during and after the transfer process.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.