What is the scope of the 'Risk of Changed Facts' provision 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' provision within 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 provision is included in the General Release that the franchisee and any guarantors must execute as a condition of transfer or renewal of their Bumper Man Franchise Agreement.
The FDD stipulates that franchisees and guarantors accept the risk that the facts could change. By agreeing to this provision, franchisees and guarantors confirm that the release will remain fully effective, regardless of any differences that may emerge later. This means the release cannot be terminated or rescinded simply because the facts were not as initially understood.
In essence, Bumper Man aims to protect itself from future claims arising from misunderstandings or unforeseen changes in circumstances. Franchisees need to understand that they are waiving their rights to pursue claims even if new information comes to light that contradicts their initial understanding. This provision highlights the importance of conducting thorough due diligence and seeking legal counsel before signing the General Release, as the franchisee will be held to the terms of the release even if the facts change.