Are there any specific state laws that are excluded from the release provided 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."
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, several states have specific laws that are excluded from the standard release. For franchisees in California, the release does not extend to claims that the releasing party was unaware of at the time of signing the release, and which would have materially affected the settlement had they been known.
For franchisees in North Dakota, any provision requiring the franchisee to agree to jurisdiction or venue outside of North Dakota is deleted. Non-competition covenants are subject to North Dakota laws on franchising and liquidated damages are prohibited. The release language will not relieve Bumper Man from liability imposed by North Dakota laws, and any provisions requiring the franchisee to waive the right to a jury trial or punitive damages are also deleted.
For franchisees in Minnesota, no release language will relieve Bumper Man from liability imposed by the laws concerning franchising in Minnesota. In Washington, the release of claims does not apply to claims arising under the Franchise Investment Protection Act. These state-specific exclusions ensure that franchisees retain certain rights and protections under their respective state laws, regardless of any general release agreements.