What kind of release must a Bumper Man franchisee and each Principal execute for a renewal term?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee (and its Principal(s) if Franchisee is an Entity) and Franchisor have executed a general release, in a form satisfactory to Franchisor, releasing Franchisor Indemnitees from any and all claims arising out of the operation of the Bumper Business, excluding claims related to the operation of the Bumper Business by Franchisee or any Principal which have not been expressly assumed by the transferee and its owners and those claims which cannot be released under Applicable Law.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
The 2025 Bumper Man Franchise Disclosure Document does not specify the type of release required for a renewal term. However, it does state that to transfer a franchise, the franchisee (and its Principal(s) if Franchisee is an Entity) and Franchisor must execute a general release, in a form satisfactory to Franchisor, releasing Franchisor Indemnitees from any and all claims arising out of the operation of the Bumper Business, excluding claims related to the operation of the Bumper Business by Franchisee or any Principal which have not been expressly assumed by the transferee and its owners and those claims which cannot be released under Applicable Law.
Because the FDD does not specify the type of release required for a renewal term, it is important for a prospective franchisee to ask Bumper Man about the specific requirements for renewal, including the nature and scope of any required releases. Understanding these obligations is crucial for financial and operational planning.
It is typical in franchising for franchisors to require franchisees to sign a release upon renewal to protect the franchisor from potential future claims related to the previous term. The absence of this information in the FDD warrants further inquiry to ensure full transparency and understanding of the renewal process.