What is the purpose of the 'Risk of Changed Facts' section in the Bumper Man General Release?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- **2.
Risk of Changed Facts.** Franchisee and Guarantors understand that the facts in respect of which the Release in Section 1 above is given may turn out to be different from the facts now known or believed by them to be true.
Franchisee and Guarantors hereby accept and assume the risk of the facts turning out to be different and agree that the Release shall nevertheless be effective in all respects and not subject to termination or rescission by virtue of any such difference in facts.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to the 2025 Bumper Man FDD, the 'Risk of Changed Facts' section in the General Release addresses the possibility that the facts underlying the release of claims may later turn out to be different from what the franchisee and guarantors initially believed. This section is included to ensure that the release remains effective even if new or different facts emerge.
By agreeing to this section, the franchisee and any guarantors acknowledge and accept the risk that the known facts could change. They agree that the release will still be valid and cannot be terminated or rescinded simply because of differences in the facts that come to light later. This provision aims to protect Bumper Man from future claims based on previously unknown or misunderstood facts at the time of the release.
In essence, this clause places the burden of potential factual inaccuracies on the franchisee and guarantors. It prevents them from later arguing that the release should be invalidated because they were unaware of certain facts when they signed it. Prospective franchisees should carefully consider this section and understand that they are assuming the risk of any unknown or changed facts that could affect their released claims. It is advisable to seek legal counsel to fully understand the implications of this provision before signing the General Release.