Does the Bumper Man General Release prevent participation in any civil 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. As part of this agreement, franchisees 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 extends to participation in any court, agency, or other forum, whether affirmatively or by way of cross-claim, defense, or counterclaim. This means franchisees give up rights to sue Bumper Man.
The FDD states that this release serves as a complete defense to any claim released under Section 1 of the agreement. Franchisees also consent to a temporary or permanent injunction to prevent or end the assertion of any such claim. This provision is designed to protect Bumper Man from legal challenges related to claims covered in the release.
However, the release 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, the FDD includes an acknowledgment of releases under California law, referencing Section 1542 of the California Civil Code, which states that 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, and that would have materially affected the settlement if known.
Prospective franchisees should carefully review the General Release with legal counsel to fully understand the scope of claims being released and the implications of the covenant not to sue. They should also be aware of the exceptions and limitations to the release, particularly those related to franchise laws and unknown claims.