factual

Does the Bumper Man General Release prevent the Releasors from assisting in any administrative proceeding?

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 Bumper Man's 2025 Franchise Disclosure Document, the General Release includes a covenant not to sue, which restricts franchisees and guarantors from participating in legal proceedings. Specifically, franchisees and guarantors, acting on behalf of themselves and other releasors, agree not to initiate, prosecute, encourage, or assist in any civil, criminal, or administrative proceeding or investigation against the released parties. This restriction applies in any court, agency, or other forum, whether the action is affirmative or defensive, such as a cross-claim, defense, or counterclaim. However, an exception exists where such assistance or participation is required by law.

This covenant has significant implications for a prospective Bumper Man franchisee. By signing the General Release, the franchisee agrees to forgo the right to take legal action against Bumper Man and related parties, even to the point of assisting someone else's claim. This could prevent a franchisee from joining a class-action lawsuit against Bumper Man or providing information to government agencies investigating the franchisor, unless legally compelled to do so. The release also 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.

It is important to note that this 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, California franchisees should be aware of Section 1542 of the California Civil Code, which states that a general release does not cover claims the releasing party is unaware of at the time of signing, which would have materially affected the settlement had they been known. Prospective franchisees should carefully consider the implications of this release and seek legal advice to fully understand their rights and obligations before signing the Franchise Agreement.

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.