Does the release provided to Bumper Man cover claims for indemnity?
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 the 2025 Bumper Man FDD, the release provided to Bumper Man franchisees and guarantors does include claims for indemnity. Specifically, the release covers claims, demands, liabilities, and causes of action of whatever kind or nature, whether known or unknown, vested or contingent, suspected or unsuspected. This broad release includes, without limitation, claims arising under federal, state, and local laws, rules, and ordinances, as well as claims for contribution, indemnity, and/or subrogation.
This means that by signing the release, the franchisee and any guarantors are giving up their rights to sue Bumper Man for a wide range of issues, including seeking indemnification. Indemnification typically involves one party compensating another for losses or damages. The release extends to claims arising out of the Franchise Agreement and all other agreements between the franchisee and/or any guarantor and any released parties, relating to any act, omission, or event occurring on or before the date of the release, unless prohibited by applicable law.
However, franchisees should note that in certain states like California, the release may not extend to claims that the releasing party does not know or suspect to exist at the time of executing the release, if those claims would have materially affected their settlement with the released party. Furthermore, in Washington state, the release does not apply to claims arising under the Franchise Investment Protection Act. Prospective franchisees should carefully review the release and understand its implications, especially concerning potential future claims or liabilities. It is advisable to seek legal counsel to fully understand the scope and effect of the release before signing it.
In Minnesota, the franchisor is prohibited from requiring a waiver of a jury trial. Also, no release language set forth in the Franchise Disclosure Document or agreement(s) can abrogate or reduce any of franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.