Does the Bumper Man General Release cover claims for indemnity?
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.
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 for indemnity. The release explicitly states that the franchisee and guarantors release Bumper Man from "any and all claims, demands, liabilities and causes of action of whatever kind or nature," including "claims for contribution, indemnity and/or subrogation". This means that franchisees are giving up their right to seek compensation from Bumper Man for losses they might incur due to the actions of the franchisor or other related parties.
This broad release has significant implications for prospective franchisees. By signing the General Release, franchisees waive their rights to sue Bumper Man for a wide range of issues, including those where Bumper Man may be at fault. The document also states that this release extends to claims "whether known or unknown, vested or contingent, suspected or unsuspected," indicating that franchisees are releasing claims they may not even be aware of at the time of signing.
However, the release does have some limitations. For franchisees in California, the document acknowledges California Civil Code Section 1542, which states that a general release does not cover claims the releasing party is unaware of, which would have materially affected their settlement had they been known. Furthermore, the release does not apply to claims arising under the Franchise Investment Protection Act in Washington. Prospective franchisees should carefully consider the scope of this release and consult with an attorney to understand its implications fully, especially in light of the laws in their specific state.