Does the release provided to Bumper Man cover claims arising from agreements other than the Franchise Agreement?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- **1.
Release by Franchisee and Guarantors.** Franchisee and Guarantors, on behalf of themselves and their successors, heirs, personal representatives, executors, administrators, personal representatives, agents, contractors, assigns, partners, shareholders, members, directors, officers, members, principals, employees, parents, subsidiaries, and affiliated entities, (collectively "Releasors") freely and without any influence forever release Franchisor, its parent, subsidiaries and affiliates and their respective past and present officers, directors, shareholders, agents and employees, in their corporate and individual capacities (collectively, the "Released Parties"), from any and all claims, demands, liabilities and causes of action of whatever kind or nature, whether known or unknown, vested or contingent, suspected or unsuspected (collectively "Claims"), that Releasors ever owned or held, now own or hold or may in the future own or hold, including, without limitation, claims arising under federal, state and local laws, rules and ordinances, claims for contribution, indemnity and/or subrogation, and claims arising out of, or relating to the Franchise Agreement and all other agreements between Franchisee and/or any Guarantor and any Released Parties, arising out of, or relating to any act, omission or event occurring on or before the date of this Release, unless prohibited by applicable law.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the release provided by the franchisee and any guarantors extends to claims arising from the Franchise Agreement and all other agreements between the franchisee or any guarantor and the released parties. This release encompasses all claims, demands, liabilities, and causes of action, whether known or unknown, vested or contingent, that the releasors ever owned, now own, or may own in the future. These claims include those arising under federal, state, and local laws, rules, and ordinances, as well as claims for contribution, indemnity, and/or subrogation. The release applies to any act, omission, or event occurring on or before the date of the release, unless prohibited by applicable law.
This means that a franchisee, by signing the release, waives their rights to sue Bumper Man (and related parties) for practically any reason, including breaches of agreements beyond just the Franchise Agreement itself. This could include supply agreements, financing agreements, or any other contracts in place. The franchisee also assumes the risk that facts they currently believe to be true may turn out to be different, and they agree that the release remains effective regardless of any such differences.
However, there are some limitations and exceptions to this broad release. For example, in Maryland, any provision requiring a general release of claims does not release any claim the franchisee may have under the Maryland Franchise Registration and Disclosure Law. Similarly, in Washington, the release does not apply to claims arising under the Franchise Investment Protection Act. Franchisees in California acknowledge that a general release does not extend to claims that they do not know or suspect to exist at the time of executing the release, which, if known, would have materially affected their settlement with Bumper Man. Prospective franchisees should carefully consider the implications of this release and consult with an attorney to understand their rights and potential liabilities before signing.