Does the Bumper Man General Release cover claims against present directors of Bumper Man?
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 the 2025 Bumper Man FDD, the General Release executed by the franchisee and any guarantors releases Bumper Man, its parents, subsidiaries, and affiliates, along with their past and present officers, directors, shareholders, agents, and employees, in both their corporate and individual capacities. This release covers a broad range of claims, whether known or unknown, vested or contingent, that the franchisee (or "Releasors") ever owned, currently owns, or may own in the future.
Specifically, the release encompasses claims arising under federal, state, and local laws, rules, and ordinances, as well as claims for contribution, indemnity, and subrogation. It also includes claims arising out of or relating to the Franchise Agreement and any other agreements between the franchisee and Bumper Man. The release applies to any act, omission, or event occurring on or before the date of the release, unless prohibited by applicable law.
This means a franchisee is giving up their right to sue Bumper Man and related parties (including current directors) for a wide variety of issues. However, this release does not apply to claims arising under the Franchise Investment Protection Act in certain states. Franchisees in California should also be aware of Section 1542 of the Civil Code, 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.