Does Bumper Man require a General Release as part of its franchise agreements?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS GENERAL RELEASE ("Release") is executed on | by |
|---|---|
| ("Franchisee") and ("Guarantors") as a | |
| condition of transfer or renewal of the Franchise Agreement dated ("Franchise | |
| Agreement") between Franchisee and Bumper Man, Inc. ("Franchisor"). |
MARYLAND
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- Item 17 additional disclosures. The following statements ae added to Item 17:
- a. The provision in the Franchise Agreement that provides termination upon bankruptcy may not be enforceable under federal bankruptcy law (11 U.S.C. Section 101 et seq.).
- b. Any provision requiring you to sign a general release of claims against us, including upon execution of the Franchise Agreement or a successor franchise
agreement or transfer, does not release any claim you may have under the Maryland Franchise Registration and Disclosure Law.
c. A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise.
d. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, a General Release is required as a condition of transfer or renewal of the Franchise Agreement. The General Release is executed by the Franchisee and any Guarantors.
This means that if a Bumper Man franchisee wants to transfer their franchise to someone else or renew their existing agreement, they (and any guarantors) must sign a document releasing Bumper Man from potential liabilities. This is a fairly standard practice in franchising, as it protects the franchisor from potential claims that could arise from the previous franchisee's operation of the business.
However, the FDD also notes that in Maryland, any provision requiring a general release of claims against Bumper Man, including upon execution of the Franchise Agreement or a successor franchise agreement or transfer, does not release any claim a franchisee may have under the Maryland Franchise Registration and Disclosure Law. This indicates that while Bumper Man uses a general release, its enforceability may be limited by state laws, offering some protection to franchisees.