Does the Bumper Man General Release cover claims against the Franchisor's subsidiaries?
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)
According to Bumper Man's 2025 Franchise Disclosure Document, the General Release executed by the franchisee and any guarantors does cover claims against Bumper Man's subsidiaries. The release explicitly states that the franchisee and guarantors, on behalf of themselves and their related entities, release Bumper Man, its parent, subsidiaries, and affiliates from all claims and liabilities. This release extends to the past and present officers, directors, shareholders, agents, and employees of these entities in their corporate and individual capacities.
This means that as a Bumper Man franchisee, you are agreeing to release not only Bumper Man, Inc. itself, but also its parent company, any subsidiary companies it owns, and any affiliated entities. This release covers a broad range of potential claims, whether known or unknown, and includes claims arising from the Franchise Agreement or any other agreements between the franchisee and the released parties. The release is effective for any act, omission, or event occurring on or before the date the release is signed, unless prohibited by applicable law.
However, franchisees in certain states like California should note the acknowledgment regarding California Civil Code Section 1542, which states that a general release does not extend to claims that the releasing party does not know or suspect to exist at the time of executing the release, and that, if known, would have materially affected the settlement. Additionally, the release of claims does not apply to claims arising under the Franchise Investment Protection Act in Washington. Prospective franchisees should carefully review these provisions and consult with legal counsel to understand the full scope and implications of the General Release before signing.