Are there any claims that are not released under the Bumper Man General Release?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7. This Release of Claims does not apply to claims arising under the Franchise Investment Protection Act, chapter 19.100 RCW, or the rules adopted thereunder in accordance with RCW 19.100.220(2).
[The following is to be used only for California franchisees]
Acknowledgment of Releases under California Law. Each Party granting a release acknowledges a familiarity with Section 1542 of the Civil Code of the State of California, which provides as follows:
"A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party."
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to the 2025 Bumper Man FDD, the general release signed by franchisees may not cover all claims, depending on the state. Franchisees in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin do not waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Bumper Man or its representatives. This means that even if a franchisee signs a general release, they may still be able to pursue claims related to franchise law violations or misrepresentations in these states.
In Maryland, any provision requiring a franchisee to sign a general release does not release claims under the Maryland Franchise Registration and Disclosure Law. Additionally, franchisees in Maryland can bring lawsuits for claims arising under this law within three years of the franchise grant. This offers further protection to franchisees in Maryland, ensuring they do not waive their rights under state franchise law through a general release.
Furthermore, the FDD includes an acknowledgment of California law regarding general releases. California Civil Code Section 1542 states that a general release does not extend to claims that the releasing party doesn't know or suspect to exist, and which would have materially affected their settlement if known. This means that if a Bumper Man franchisee in California is unaware of a claim at the time of signing the release, the release may not cover that claim. This provides an additional layer of protection for franchisees who may later discover issues that were not apparent when they signed the release.
Bumper Man franchisees should carefully review the specific terms of the general release and understand their rights under applicable state laws. Consulting with an attorney is advisable to fully understand the implications of signing a general release and to ensure that their rights are protected. Franchisees should also be aware of the time limits for bringing claims, particularly in states like Maryland, to avoid losing their right to sue.