Does the Bumper Man General Release require the Franchisee to warrant that they have not transferred any claims?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- **3.
No Prior Assignment.** Franchisee and Guarantors represent and warrant that the Releasors are the sole owners of all Claims and rights released hereunder and that Releasors have not assigned or transferred, or purported to assign or transfer, to any person or entity, any Claim released under Section 1 above.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the General Release does include a warranty that the franchisee has not transferred any claims. Specifically, the franchisee and any guarantors must represent and warrant that they are the sole owners of all claims and rights being released. They also warrant that they have not assigned or transferred, or attempted to assign or transfer, any claim being released to another party. This is part of the standard release agreement.
This provision means that a prospective Bumper Man franchisee must ensure they have not already given away any rights to claims they are releasing as part of the General Release. If a franchisee has previously assigned a claim to someone else, this warranty would be false, potentially creating legal issues. The franchisee needs to have a clear understanding of any prior agreements or actions that could affect their ownership of potential claims against Bumper Man.
This requirement is fairly standard in franchise agreements, as franchisors want to ensure they are getting a clean break from any potential liabilities. By warranting that no claims have been transferred, Bumper Man aims to avoid dealing with third parties who might assert rights based on previously assigned claims. Franchisees should carefully review their records and legal history to confirm they can truthfully make this representation before signing the General Release.
It is important to note that in certain states like Maryland, any provision requiring a general release of claims does not release any claim the franchisee may have under the Maryland Franchise Registration and Disclosure Law. Franchisees should also be aware of the acknowledgment of releases under California law, specifically Section 1542 of the 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.