Who are the parties involved in the General Release associated with a Bumper Man franchise?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS GENERAL RELEASE ("Release") is executed on | by |
|---|---|
| ("Franchisee") and ("Guarantors") as a | |
| condition of transfer or renewal of the Franchise Agreement dated ("Franchise | |
| Agreement") between Franchisee and Bumper Man, Inc. ("Franchisor"). |
- **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."
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- General Release.
A release or waiver of rights in the franchise agreement or related agreements purporting to bind the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act or any rules or orders thereunder is void except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2).
In addition, any such release or waiver executed in connection with a renewal or transfer of a franchise is likewise void except as provided for in RCW 19.100.220(2).
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the General Release involves the franchisee, any guarantors, and Bumper Man, Inc., the franchisor. The General Release is executed as a condition of transfer or renewal of the Franchise Agreement. This means that when a franchisee seeks to transfer their franchise to a new owner or renew their existing agreement, they, along with any guarantors, must sign this release.
The General Release essentially protects Bumper Man from potential legal claims by the franchisee and guarantors related to the franchise agreement. By signing the release, the franchisee and guarantors agree not to initiate or participate in any legal proceedings against Bumper Man. This can include civil, criminal, or administrative actions.
However, the FDD also notes an important exception for franchisees in Washington state. Under Washington law, a release or waiver of rights is void unless it meets specific conditions. These conditions include the release being part of a negotiated settlement after the franchise agreement is in effect and both parties being represented by independent counsel. This means that Bumper Man franchisees in Washington have additional protections regarding waivers of their rights under the Washington Franchise Investment Protection Act.
Additionally, the document includes an acknowledgment for California franchisees regarding Section 1542 of the California 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, and that if known, would have materially affected the settlement. This highlights the importance of franchisees fully understanding their rights and potential claims before signing the General Release.