What is the franchisee's obligation regarding initiating lawsuits against Bumper Man after signing the release?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- **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. Each Party granting a release acknowledges a familiarity with Section 1542 of the Civil Code of the State of California, which provides as follows:
"A general release does not extend to claims that the creditor or 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 by him or her, would have materially affected his or her settlement with the debtor or released party."
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to the 2025 Bumper Man FDD, franchisees and their guarantors agree not to initiate any legal actions against parties released under the terms of the release. This includes participating in civil, criminal, or administrative proceedings or investigations in any forum, whether directly or indirectly through cross-claims, defenses, or counterclaims. This obligation extends to anyone released under the agreement.
The release serves as a complete defense against any claim covered within it, and Bumper Man is entitled to seek an injunction to prevent or stop any such claim. This agreement is binding on the successors, assigns, heirs, and personal representatives of both Bumper Man and the franchisee.
However, this release does not apply to claims arising under the Franchise Investment Protection Act, chapter 19.100 RCW, or its associated rules. For California franchisees, the document acknowledges California Civil Code Section 1542, which pertains to the release of unknown claims, ensuring that the releasing party is aware they are giving up rights to claims they may not even know exist at the time of signing the release.