Does the Bumper Man General Release cover claims arising under local laws?
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.
- **2.
Risk of Changed Facts.** Franchisee and Guarantors understand that the facts in respect of which the Release in Section 1 above is given may turn out to be different from the facts now known or believed by them to be true.
Franchisee and Guarantors hereby accept and assume the risk of the facts turning out to be different and agree that the Release shall nevertheless be effective in all respects and not subject to termination or rescission by virtue of any such difference in facts.
- **3.
No Prior Assignment.** Franchisee and Guarantors represent and warrant that the Releasors are the sole owners of all Claims and rights released hereunder and that Releasors have not assigned or transferred, or purported to assign or transfer, to any person or entity, any Claim released under Section 1 above.
- **4.
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 claims arising under local laws. Specifically, the release covers "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".
This means that when a franchisee signs the General Release, they are giving up their right to sue Bumper Man for any claims, including those based on local laws and ordinances. This release extends to a wide range of potential claims, covering both known and unknown issues that may arise before the date the release is signed. The release is comprehensive, encompassing claims for contribution, indemnity, and subrogation, as well as those related to the Franchise Agreement and other agreements between the franchisee and Bumper Man.
However, there are exceptions to this broad release. For example, the release does not apply to claims arising under the Franchise Investment Protection Act in Washington state. Additionally, certain states like California have laws (specifically Section 1542 of the Civil Code) that protect franchisees from unknowingly releasing claims they are unaware of at the time of signing the release. In Maryland, any provision requiring a general release does not release any claim under the Maryland Franchise Registration and Disclosure Law. Franchisees in these states retain certain rights and protections despite signing the release.
Prospective Bumper Man franchisees should carefully review the General Release and understand the implications of waiving their rights to bring claims against the franchisor. It is advisable to consult with an attorney to fully understand the scope of the release and any applicable state-specific protections before signing any agreements.