Does the Bumper Man General Release prevent participation in any administrative proceeding?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- **4.
Covenant Not to Sue.** Franchisee and Guarantors, on behalf of themselves and Releasors, covenant not to initiate, prosecute, encourage, assist, or (except as required by law) participate in any civil, criminal, or administrative proceeding or investigation in any court, agency, or other forum, either affirmatively or by way of cross-claim, defense, or counterclaim, against any person or entity released under Section 1 above with respect to any Claim released under Section 1 above.
- **5.
Complete Defense.** Franchisee and Guarantors: (i) acknowledge that this Release shall be a complete defense to any Claim released under Section 1 above; and (ii) consent to the entry of a temporary or permanent injunction to prevent or end the assertion of any such Claim.
- **6.
Successors and Assigns.** This Release will inure to the benefit of and bind the successor, assigns, heirs and personal representatives of Franchisor and each Releasor.
- 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 includes a covenant not to sue, which restricts a franchisee's ability to participate in legal proceedings. Specifically, the franchisee and guarantors agree not to initiate, prosecute, encourage, assist, or participate in any civil, criminal, or administrative proceeding or investigation against any person or entity released under the agreement. This restriction applies in any court, agency, or other forum, whether affirmatively or by way of cross-claim, defense, or counterclaim.
This means that as a Bumper Man franchisee, you would be giving up your right to take part in certain legal actions against the company or related parties. This could include not only lawsuits but also administrative actions, such as complaints to government agencies. The release serves as a complete defense against any claim released under Section 1 of the agreement, and Bumper Man can seek an injunction to prevent any such claim from being asserted.
However, the FDD also states that 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). Additionally, a special note for California franchisees acknowledges Section 1542 of the Civil Code of the State of California, concerning claims that were unknown at the time of executing the release. Prospective franchisees should carefully consider the implications of this release and consult with legal counsel to understand their rights and obligations.