Does the Bumper Man Guaranty give the Principal any rights to reimbursement or subrogation against the Franchisee?

According to the 2025 Bumper Man Franchise Disclosure Document, the Principal, by executing the Guaranty, waives all rights to payments and claims for reimbursement or subrogation against the Franchisee (referred to as "Certified Technician" in one instance) arising from their performance under the Guaranty. This means that if the Principal makes any payments or performs any obligations on behalf of the Franchisee due to the Franchisee's breach of the Franchise Agreement, the Principal cannot seek reimbursement from the Franchisee for those payments or actions.

This waiver is a significant point for anyone acting as a Principal for a Bumper Man franchise, as it eliminates their ability to recover funds or assets they expend to cover the Franchisee's liabilities. The Principal is essentially taking on the risk of the Franchisee's non-performance without recourse against the Franchisee.

This type of waiver is not uncommon in franchising, as franchisors often require personal guarantees to ensure the financial stability of the franchise and to have recourse beyond the business entity itself. However, prospective Principals should carefully consider the implications of this waiver and potentially seek legal counsel to fully understand their obligations and risks under the Guaranty.