Does the Bumper Man General Release cover claims against present shareholders 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 Bumper Man's 2025 Franchise Disclosure Document, the General Release executed by the franchisee and any guarantors includes present shareholders of Bumper Man. The release extends to the Franchisor, its parent, subsidiaries, and affiliates, along with their respective past and present officers, directors, shareholders, agents, and employees in both their corporate and individual capacities, collectively referred to as the "Released Parties". This means that by signing the release, the franchisee agrees to release these parties from any and all claims, demands, liabilities, and causes of action.
This release covers a wide range of claims, whether known or unknown, vested or contingent, suspected or unsuspected, arising from federal, state, and local laws, 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, any guarantor, and any of the Released Parties. The release applies to any act, omission, or event occurring on or before the date of the release, unless prohibited by applicable law.
However, franchisees in certain states including California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin should note that no statement, questionnaire, or acknowledgment signed in connection with the franchise relationship can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Bumper Man or its representatives. In California, 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, which, if known, would have materially affected the settlement. Therefore, franchisees should carefully review the terms of the release and understand its implications, especially concerning potential future claims.