What is the purpose of the Bumper Man General Release?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- **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."
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the General Release serves to protect Bumper Man from potential lawsuits or claims by franchisees and their guarantors. Specifically, the franchisee and guarantors agree not to initiate or participate in any legal proceedings against Bumper Man or related parties concerning any claims covered by the release. This includes a covenant not to sue, preventing franchisees from taking legal action against Bumper Man.
The General Release also provides Bumper Man with a complete defense against any claims released under the agreement. This means that if a franchisee attempts to bring a claim covered by the release, Bumper Man can use the release as a legal defense to prevent the claim from proceeding. The franchisee and guarantors also consent to the entry of a temporary or permanent injunction to prevent or end the assertion of any such claim.
The release extends to the successors, assigns, heirs, and personal representatives of both Bumper Man and the franchisee, ensuring that the terms of the release remain in effect even if ownership or representation changes. However, it's important to note that in Washington state, the release does not apply to claims arising under the Franchise Investment Protection Act. Additionally, for California franchisees, the document acknowledges Section 1542 of the Civil Code regarding claims unknown at the time of signing the release.
In practical terms, a prospective Bumper Man franchisee should carefully review the General Release with legal counsel to fully understand the scope of claims being released and the potential impact on their rights. Franchisees should be aware of the implications of waiving their right to sue and ensure they are comfortable with the protections afforded to Bumper Man under the release. The inclusion of state-specific provisions highlights the importance of understanding how local laws may affect the enforceability and interpretation of the release.