Does the Bumper Man General Release prevent the Releasors from initiating 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.
- **5.
Complete Defense.** Franchisee and Guarantors: (i) acknowledge that this Release shall be a complete defense to any Claim released under Section 1 above; and (ii) consent to the entry of a temporary or permanent injunction to prevent or end the assertion of any such Claim.
- **6.
Successors and Assigns.** This Release will inure to the benefit of and bind the successor, assigns, heirs and personal representatives of Franchisor and each Releasor.
- 7. This Release of Claims 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).
[The following is to be used only for California franchisees]
Acknowledgment of Releases under California Law. Each Party granting a release acknowledges a familiarity with Section 1542 of the Civil Code of the State of California, which provides as follows:
"A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party."
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. Franchisees and guarantors, on behalf of themselves and their 'Releasors,' agree not to initiate or participate in any civil, criminal, or administrative proceeding against any person or entity released under the terms of the agreement. This extends to actions in any court, agency, or forum, whether pursued affirmatively or as a defense or counterclaim. This provision is a significant legal commitment that could limit a franchisee's ability to seek legal remedies against Bumper Man or related parties.
Bumper Man's FDD states that this release serves as a complete defense against any claim released under Section 1 of the agreement. Furthermore, franchisees and guarantors consent to a temporary or permanent injunction to prevent the assertion of any such claim. This reinforces the binding nature of the release and the potential legal consequences of violating its terms. The release benefits and binds the successors, assigns, heirs, and personal representatives of Bumper Man and each Releasor, ensuring its continued effect across different parties and circumstances.
However, the Release of Claims 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). This carve-out provides some protection for franchisees under specific Washington state franchise laws. Additionally, for California franchisees, the document acknowledges Section 1542 of the California Civil Code, which addresses the release of unknown claims. This acknowledgment suggests that California law may offer some additional protections regarding claims not known at the time of signing the release, potentially mitigating the full impact of the release.