Does the Bumper Man General Release prevent the Releasors from prosecuting 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.
- **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 FDD, the General Release includes a covenant not to sue, which restricts the franchisee and guarantors from initiating or participating in legal 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 extends to any court, agency, or other forum, whether affirmatively or as a defense. However, an exception exists where participation is required by law.
This means that as a Bumper Man franchisee, you and any guarantors involved in the franchise agreement are agreeing to not take legal action against Bumper Man or related parties under most circumstances. This includes not only civil suits but also criminal proceedings, which is a significant commitment. 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.
It is important to note that this 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). Additionally, California franchisees should be aware of Section 1542 of the California Civil Code, which states that a general release does not cover claims the releasing party is unaware of at the time of signing the release, and which would have materially affected the settlement had they been known. Prospective franchisees should carefully review the General Release with legal counsel to fully understand the scope of claims being waived and the implications of the covenant not to sue.