Does the Bumper Man General Release prevent the Releasors from participating in a proceeding as a defense?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
r, to any person or entity, any Claim released under Section 1 above.
- 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.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the General Release includes a covenant not to sue. As part of this agreement, the franchisee and guarantors, acting on behalf of themselves and other releasors, agree not to participate in any civil, criminal, or administrative proceeding or investigation against any released person or entity. This restriction applies whether the participation is affirmative or by way of cross-claim, defense, or counterclaim.
This means that franchisees who sign the General Release effectively waive their right to defend themselves in legal proceedings initiated by Bumper Man or other released parties, except as required by law. The document also states that the release serves as a complete defense against any claim released under Section 1 of the agreement, and the franchisee consents to injunctions preventing the assertion of such claims.
This clause has significant implications for prospective franchisees. By signing the General Release, they may be giving up important legal rights and limiting their ability to respond to potential lawsuits or disputes with Bumper Man. Franchisees should carefully consider the scope of this release and seek legal advice before signing, especially regarding claims they may not be aware of at the time of signing the release. The release 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).
It is important to note that the FDD includes an addendum for franchisees in certain states (California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin) which states that no signed statement shall waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by Bumper Man or its representatives.