Are there any exceptions to the claims released by the franchisee and guarantors to Bumper Man?
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."
EXHIBIT I TO FDD STATE ADDENDA
NO WAIVER OR DISCLAIMER OF RELIANCE IN CERTAIN STATES
The following provision applies only to franchisees and franchises that are subject to the state franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin:
No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.
MARYLAND
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- Item 17 additional disclosures. The following statements ae added to Item 17:
- 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.
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- For the sake of clarity, the last sentence of the Franchisee Disclosure Questionnaire attached as Exhibit H to the Disclosure Document is amended as follows:
"All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law."
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to the 2025 Bumper Man FDD, there are some exceptions to the release of claims by franchisees and guarantors. For franchisees in Washington, Wisconsin, Virginia, South Dakota, Rhode Island, North Dakota, New York, Minnesota, Michigan, Maryland, Indiana, Illinois, California, and Hawaii, no statement or acknowledgement can 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 ensures that franchisees in these states retain their legal rights and protections under state franchise laws, regardless of any agreements they may sign.
In Maryland, any provision requiring a general release of claims does not release claims under the Maryland Franchise Registration and Disclosure Law. Franchisees in Maryland can bring lawsuits for claims arising under this law within three years of the franchise grant. Additionally, any representations requiring franchisees to release or waive liability do not apply to liability incurred under the Maryland Franchise Registration and Disclosure Law.
For California franchisees, the release of claims does not extend to claims that the releasing party is unaware of, which, if known, would have significantly affected their settlement with the released party. Furthermore, the 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). These stipulations provide additional protection to franchisees, ensuring they do not unknowingly waive important rights or claims.