Does the Bumper Man General Release prevent the Releasors from participating in a proceeding as a cross-claim?
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, which restricts the franchisee and guarantors from participating in legal proceedings. Specifically, the franchisee and guarantors, acting on behalf of themselves and other releasors, agree not to initiate, prosecute, encourage, assist, or participate in any civil, criminal, or administrative proceeding or investigation. This restriction applies across various forums, including courts and agencies.
This covenant extends to participation in proceedings either affirmatively or through a cross-claim, defense, or counterclaim against any person or entity released under Section 1 of the General Release, concerning any claim also released under Section 1. This means a Bumper Man franchisee is prevented from raising claims against the franchisor or related parties, even defensively in response to a lawsuit initiated by those parties, if those claims fall under the scope of the release.
The document also states that the release serves as a complete defense to any claim released under Section 1, and the franchisee and guarantors consent to an injunction to prevent the assertion of any such claim. However, 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).
For franchisees in California, the document acknowledges Section 1542 of the California Civil Code, which states that a general release does not extend to claims unknown at the time of signing that would have materially affected the settlement if known. This acknowledgment may provide some limited protection for California franchisees regarding unknown claims.