Does the Bumper Man General Release prevent the Releasors from prosecuting any civil proceeding?
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.
- 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.
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. Franchisees and guarantors, acting on behalf of themselves and their 'Releasors,' 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 in any court, agency, or other forum, whether acting affirmatively or defensively. This means franchisees give up their rights to sue Bumper Man.
The FDD states that this release serves as a complete defense against any claim released under Section 1 of the agreement. Franchisees and guarantors consent to the entry of a temporary or permanent injunction to prevent or end the assertion of any such claim. This reinforces the binding nature of the release and provides Bumper Man with legal mechanisms to enforce it.
However, 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). For California franchisees, the document acknowledges Section 1542 of the California Civil Code, 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 would have materially affected their settlement with the released party if known. This provides a limited exception for unknown claims under California law. Prospective franchisees should consult with an attorney to fully understand the implications of this release and its limitations.