Does the release provided to Bumper Man act as a complete defense against any claim released?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- **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 release provided to Bumper Man by the franchisee and guarantors acts as a complete defense to any claim released under Section 1 of the release. The franchisee and guarantors also consent to a temporary or permanent injunction to prevent or end the assertion of any such claim. This means that Bumper Man intends for the release to prevent franchisees from pursuing legal action related to the released claims.
However, this complete defense is subject to certain limitations. Specifically, for California franchisees, the acknowledgment of releases includes a reference to California Civil Code Section 1542, 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 means that if a California franchisee later discovers a claim that was unknown at the time of signing the release, the release may not bar the franchisee from pursuing that claim.
Furthermore, the release of claims does not apply to claims arising under the Franchise Investment Protection Act, chapter 19.100 RCW, in Washington. Additionally, in certain states like California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, no statement signed by the franchisee can waive claims under state franchise law or disclaim reliance on statements made by Bumper Man. Maryland also stipulates that any provision requiring a general release of claims does not release any claim under the Maryland Franchise Registration and Disclosure Law. Therefore, the enforceability and scope of the release can vary depending on the franchisee's location and the specific laws of that jurisdiction.