What is the franchisee's obligation regarding prior assignments of claims being released to Bumper Man?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- **3.
No Prior Assignment.** Franchisee and Guarantors represent and warrant that the Releasors are the sole owners of all Claims and rights released hereunder and that Releasors have not assigned or transferred, or purported to assign or transfer, to any person or entity, any Claim released under Section 1 above.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, franchisees and guarantors must warrant that they are the sole owners of all claims and rights being released. This means they must confirm that they have not previously assigned or transferred any of these claims to another person or entity. This warranty is a condition of the transfer or renewal of the Franchise Agreement.
This requirement ensures that Bumper Man receives a clear and unencumbered release of claims. If a franchisee had previously assigned a claim to someone else, the release they provide to Bumper Man would be invalid for that particular claim. This could expose Bumper Man to potential legal issues in the future if the assignee were to pursue that claim.
By representing that they have not made any prior assignments, the franchisee assures Bumper Man that the release is comprehensive and legally sound. This protects Bumper Man from dealing with third-party claims related to the franchisee's operations or the Franchise Agreement. Franchisees should carefully review their records to ensure they have not assigned any claims before signing the release.