Does the Bumper Man General Release prevent participation in any criminal 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.
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. Specifically, franchisees and guarantors agree not to initiate, prosecute, encourage, assist, or participate in any civil, criminal, or administrative proceeding or investigation against released parties, except as required by law. This means a franchisee generally cannot take part in legal actions against Bumper Man or related parties if the claim is covered by the release.
This covenant extends to participation in proceedings in any court, agency, or other forum, whether initiated affirmatively or defensively. However, this restriction applies only with respect to any claim released under Section 1 of the General Release, meaning the scope of the release determines the extent of this limitation.
It is important to note that this release does not apply to claims arising under the Franchise Investment Protection Act in Washington state. Additionally, California franchisees acknowledge that a general release does not cover claims they were unaware of at the time of signing the release, which could have materially affected their settlement. Franchisees should carefully review Section 1 of the General Release to understand which claims are being released and the implications of the covenant not to sue.