Does the Bumper Man General Release cover claims arising under rules?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7. This Release of Claims does not apply to claims arising under the Franchise Investment Protection Act, chapter 19.100 RCW, or the rules adopted thereunder in accordance with RCW 19.100.220(2).
[The following is to be used only for California franchisees]
Acknowledgment of Releases under California Law. Each Party granting a release acknowledges a familiarity with Section 1542 of the Civil Code of the State of California, which provides as follows:
"A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party."
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to the 2025 Bumper Man FDD, the general release of claims typically does not apply to claims arising under specific rules, particularly those related to franchise investment protection. Specifically, for franchisees in Washington state, the release does not cover claims arising under the Franchise Investment Protection Act, chapter 19.100 RCW, or the rules adopted under RCW 19.100.220(2). This means that franchisees in Washington retain their rights to pursue claims related to violations of these specific regulations, despite signing a general release. This ensures that franchisees are not inadvertently waiving their rights under franchise laws designed to protect their investments.
For franchisees in Maryland, any provision requiring them to sign a general release of claims against Bumper Man, including upon execution of the Franchise Agreement or a successor franchise agreement or transfer, does not release any claim they may have under the Maryland Franchise Registration and Disclosure Law. Additionally, franchisees in Maryland have the right to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, provided it is brought within 3 years after the grant of the franchise. This offers additional protection to franchisees in these states, ensuring they do not waive their rights under state franchise laws.
Prospective Bumper Man franchisees should be aware of these state-specific exceptions to the general release, as they can significantly impact their legal rights and options. It is crucial to consult with a legal professional to fully understand the implications of the release and how it interacts with the franchise laws in their specific state. This is especially important for franchisees in states like Washington and Maryland, where specific protections are in place to prevent the waiver of rights under franchise laws.