Are Bumper Man franchisees and operating principals required to sign a liability waiver and release?
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 Bumper Man's 2025 Franchise Disclosure Document, a general release is required from both the franchisee and its principals when transferring the franchise. This release, in a form satisfactory to Bumper Man, absolves the Franchisor Indemnitees from claims related to the Bumper Business operation. However, this excludes claims related to the franchisee or principal's operation that the transferee hasn't expressly assumed, and claims that cannot be released under applicable law.
This requirement is part of the transfer conditions, ensuring Bumper Man is protected from potential liabilities arising from the franchisee's past operations. The transferee also needs to meet all transfer conditions outlined in the Franchise Agreement and the Manual, including transitioning customer accounts.
This clause ensures a clean break for Bumper Man from any prior liabilities when a franchise is transferred. Prospective franchisees should understand that they and their principals will need to sign this release to facilitate a transfer. It is important to carefully review the release form to understand the scope of the claims being released and to seek legal counsel if needed.