factual

Does the Bumper Man General Release prevent the Releasors from encouraging any civil proceeding?

Q: Does the Bumper Man General Release prevent the Releasors from encouraging any civil proceeding?

- **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)

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 Franchise Disclosure Document, the General Release includes a covenant not to sue. This covenant specifically prevents the Releasors (which includes the franchisee, guarantors, and their related parties) from encouraging any civil proceeding against the Released Parties (which includes Bumper Man and its affiliates). This means franchisees are contractually obligated not to instigate or support lawsuits or investigations against Bumper Man related to claims covered by the release.

This provision is a significant legal commitment for potential Bumper Man franchisees. By signing the General Release, franchisees agree to abstain from any action that might lead to litigation against Bumper Man. This extends beyond directly initiating a lawsuit to also include actions such as advising or supporting others in pursuing legal action.

However, it's important to note an exception: this release does not apply to claims arising under the Franchise Investment Protection Act, chapter 19.100 RCW, in Washington state. This means that franchisees in Washington retain their rights to pursue claims under this specific law, notwithstanding the general release. Prospective franchisees should carefully consider the implications of this covenant not to sue and consult with legal counsel to fully understand their rights and obligations.

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.

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