factual

Does the Bumper Man General Release prevent participation in any investigation?

Bumper_Man Franchise · 2025 FDD

Answer 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, which restricts a franchisee's ability to participate in certain legal proceedings. Specifically, the franchisee and any guarantors agree not to initiate, prosecute, encourage, or assist in any civil, criminal, or administrative proceeding or investigation against any person or entity released under the agreement. However, there is an exception: participation is allowed if required by law.

This means that as a Bumper Man franchisee, you are generally prevented from taking part in lawsuits or investigations against the franchisor or related parties if the claim is covered by the release. This could limit your legal options if you believe Bumper Man has acted unlawfully or breached the franchise agreement. 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.

However, the release does not apply to claims arising under the Franchise Investment Protection Act in Washington state. Furthermore, franchisees in certain states like California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin may have additional protections under state franchise laws that prevent waiving claims or disclaiming reliance on statements made by Bumper Man. Prospective franchisees should carefully review the specific terms of the General Release and understand its implications for their legal rights and remedies.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.