Does the Bumper Man General Release apply to claims arising out of negligence?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- **1.
Release by Franchisee and Guarantors.** Franchisee and Guarantors, on behalf of themselves and their successors, heirs, personal representatives, executors, administrators, personal representatives, agents, contractors, assigns, partners, shareholders, members, directors, officers, members, principals, employees, parents, subsidiaries, and affiliated entities, (collectively "Releasors") freely and without any influence forever release Franchisor, its parent, subsidiaries and affiliates and their respective past and present officers, directors, shareholders, agents and employees, in their corporate and individual capacities (collectively, the "Released Parties"), from any and all claims, demands, liabilities and causes of action of whatever kind or nature, whether known or unknown, vested or contingent, suspected or unsuspected (collectively "Claims"), that Releasors ever owned or held, now own or hold or may in the future own or hold, including, without limitation, claims arising under federal, state and local laws, rules and ordinances, claims for contribution, indemnity and/or subrogation, and claims arising out of, or relating to the Franchise Agreement and all other agreements between Franchisee and/or any Guarantor and any Released Parties, arising out of, or relating to any act, omission or event occurring on or before the date of this Release, unless prohibited by applicable law.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
Based on the 2025 Bumper Man Franchise Disclosure Document, the General Release executed by the franchisee and guarantors releases Bumper Man from various claims and liabilities. Section 1 of the General Release states that the release covers all claims, demands, liabilities, and causes of action, whether known or unknown, vested or contingent, suspected or unsuspected, that the franchisee and guarantors ever owned or held, now own or hold, or may in the future own or hold. This includes claims arising under federal, state, and local laws, rules, and ordinances, claims for contribution, indemnity, and/or subrogation, and claims arising out of, or relating to the Franchise Agreement and all other agreements between the franchisee and/or any guarantor and any released parties, arising out of, or relating to any act, omission, or event occurring on or before the date of this release, unless prohibited by applicable law.
This broad language suggests that claims arising out of negligence could be included in the General Release, as negligence could be considered an "omission or event occurring on or before the date of this Release." However, the release explicitly states "unless prohibited by applicable law." This means that if a state's law prohibits the release of negligence claims in a franchise agreement, then the release would not apply to such claims in that state.
It is important for prospective Bumper Man franchisees to consult with legal counsel to understand the specific laws in their state regarding the release of claims, including negligence claims, in franchise agreements. This will help them understand the full scope and implications of the General Release they are required to sign.