Does the Bumper Man General Release prevent the Releasors from participating in a proceeding as a counterclaim?

According to the 2025 Bumper Man FDD, the General Release includes a covenant not to sue, which restricts franchisees and guarantors from participating in legal proceedings against released parties. Specifically, this covenant prevents them from initiating, prosecuting, encouraging, assisting, or participating in any civil, criminal, or administrative proceeding or investigation. This restriction applies in any court, agency, or other forum, whether the participation is affirmative or through a cross-claim, defense, or counterclaim.

This means that as a Bumper Man franchisee, you and any guarantors are agreeing not to take legal action against Bumper Man or related parties under most circumstances. This includes not only initiating a lawsuit but also participating in one that someone else starts, even if it's to defend yourself via a counterclaim. The release serves as a complete defense against any claim released, and Bumper Man can seek an injunction to prevent any such claim from being asserted.

However, there is an exception: 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 exception may provide some limited protection for franchisees in Washington state related to franchise investment laws. Additionally, California franchisees should note the acknowledgment regarding Section 1542 of the California Civil Code, which pertains to unknown claims at the time of executing the release.

Prospective franchisees should carefully consider the implications of this broad release, as it significantly limits their legal recourse against Bumper Man. It is advisable to consult with an attorney to fully understand the scope and impact of this covenant not to sue before signing the Franchise Agreement and General Release.