Does the Bumper Man General Release prevent the Releasors from initiating any criminal 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 FDD, the General Release includes a covenant not to sue, which restricts the franchisee and guarantors from initiating criminal proceedings. Specifically, the franchisee and guarantors agree not to initiate, prosecute, encourage, assist, or participate in any civil, criminal, or administrative proceeding or investigation against any person or entity released under the agreement. This applies to any court, agency, or other forum, whether pursued affirmatively or as a defense.
This provision means that as a Bumper Man franchisee, you and any guarantors involved in the franchise agreement are giving up the right to bring legal action against the franchisor and related parties under most circumstances. This includes not only civil lawsuits but also participating in criminal or administrative investigations. 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 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 means that franchisees retain certain rights and protections under franchise laws, particularly in Washington state. Additionally, California franchisees should be aware of Section 1542 of the Civil Code of the State of California, which states that a general release does not extend to claims that the releasing party does not know or suspect to exist at the time of executing the release and that, if known, would have materially affected the settlement.
Prospective Bumper Man franchisees should carefully review the General Release and understand the full scope of the claims they are waiving. It is advisable to seek legal counsel to fully understand the implications of this release and how it may affect their rights and remedies as a franchisee. Understanding these limitations is crucial before signing the franchise agreement.