Does the Bumper Man General Release prevent the Releasors from assisting 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.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, the General Release includes a covenant not to sue. This covenant prevents franchisees and guarantors, on behalf of themselves and their 'Releasors,' from initiating, prosecuting, encouraging, or assisting in any civil, criminal, or administrative proceeding or investigation against any person or entity released under the agreement. This extends to actions in any court, agency, or other forum, whether pursued affirmatively or as a defense or counterclaim.
This provision means that as a Bumper Man franchisee, you and related parties (the Releasors) agree not to take legal action against Bumper Man or related parties for claims covered by the release. This includes not only direct legal action but also providing support or encouragement to others pursuing such actions. 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, it's important to note that this release does not apply to claims arising under the Franchise Investment Protection Act, chapter 19.100 RCW, or its associated rules. For California franchisees, the document acknowledges Section 1542 of the California Civil Code, which states that a general release does not cover claims the releasing party is unaware of that would have materially affected their settlement if known. Prospective franchisees should carefully consider the implications of this release and consult with legal counsel to understand their rights and obligations.
In essence, this clause aims to protect Bumper Man from future litigation related to the franchise agreement. Franchisees should be fully aware of the scope of the claims they are releasing and the potential impact on their ability to pursue legal remedies in the future. The FDD also includes state-specific addenda that may provide additional protections or limitations on these waivers, so franchisees should review those carefully as well.