When terminating a Bumper Man franchise agreement, must the franchisee and each Principal execute a general release of claims against Franchisor Indemnitees?

According to the 2025 Bumper Man Franchise Disclosure Document, when transferring a franchise, the franchisee and its principals must execute a general release. Specifically, the franchisee (and its Principal(s) if Franchisee is an Entity) and Bumper Man must execute a general release, in a form satisfactory to Bumper Man, releasing Franchisor Indemnitees from any and all claims arising out of the operation of the Bumper Business. There are exceptions for claims related to the operation of the Bumper Business by Franchisee or any Principal which have not been expressly assumed by the transferee and its owners and those claims which cannot be released under Applicable Law.

This means that as a condition of transferring the franchise, Bumper Man requires both the franchisee and any principals involved to sign a release that prevents them from making future claims against Bumper Man and related parties (Franchisor Indemnitees). This release covers any claims related to the operation of the Bumper Man business. This is a fairly standard practice in franchising, as it protects the franchisor from potential future litigation related to the franchisee's past operations.

However, the release does not extend to claims assumed by the new transferee or claims that cannot be released under applicable law. This provides some limited protection for the franchisee. The franchisee should carefully review the release document with legal counsel to fully understand the scope of the claims being released and ensure they are comfortable with the terms before proceeding with the transfer. The franchisee should also be aware of any potential claims they may have against Bumper Man before signing the release, as these claims will be waived.