Does the Bumper Man General Release prevent the Releasors from encouraging any administrative 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 specifically states that the franchisee and guarantors, acting on behalf of themselves and other releasors, agree not to encourage any administrative proceeding against those released under the agreement. This means franchisees are giving up their right to instigate or support administrative actions related to claims covered by the release.
This provision has significant implications for prospective Bumper Man franchisees. By signing the General Release, a franchisee agrees to not only refrain from initiating legal actions but also from actively supporting or encouraging others to do so. This could limit a franchisee's ability to respond to issues or disputes that may arise during the franchise term, as any form of encouragement could be seen as a breach of the covenant.
However, there is an exception: this restriction does not apply if encouraging or participating in such proceedings is required by law. Furthermore, 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). Franchisees in California should also note the acknowledgment regarding Section 1542 of the Civil Code, which pertains to claims unknown at the time of signing the release. Therefore, franchisees should carefully consider the scope of this release and seek legal advice to fully understand its implications before signing.