Does the Bumper Man General Release require the Franchisee and Guarantors to assume any risks?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- **2.
Risk of Changed Facts.** Franchisee and Guarantors understand that the facts in respect of which the Release in Section 1 above is given may turn out to be different from the facts now known or believed by them to be true.
Franchisee and Guarantors hereby accept and assume the risk of the facts turning out to be different and agree that the Release shall nevertheless be effective in all respects and not subject to termination or rescission by virtue of any such difference in facts.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the General Release requires both the franchisee and any guarantors to assume certain risks. Specifically, franchisees and guarantors must acknowledge that the facts related to the release might change or be different from what they currently know or believe.
By signing the release, the franchisee and guarantors agree to accept the risk that these facts may turn out to be different. They also agree that the release will remain effective regardless of any such differences in facts, meaning they cannot terminate or rescind the agreement based on new information. This means a Bumper Man franchisee could unknowingly release the company from claims based on facts they are not yet aware of.
This section of the release is significant because it places the burden on the franchisee and guarantors to conduct thorough due diligence before signing. It also limits their ability to pursue future claims against Bumper Man, even if those claims are based on previously unknown information. This type of clause is not uncommon in franchise agreements, as franchisors seek to protect themselves from future liabilities; however, franchisees should carefully consider the implications before signing.