factual

What claims must a Bumble Roofing franchisee release to extend their rights to operate the Roofing Business?

Bumble_Roofing Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (h) Franchisee executes a general release of all claims Franchisee may have against Franchisor, its officers, directors, members, shareholders, agents, Affiliates, and employees, whether in their corporate and/or individual capacities.

This release shall include all claims arising under any federal, state, or local law, rule, or ordinance arising out of or concerning this Agreement (to the fullest extent permitted by law) and shall be in a form satisfactory to Franchisor;

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2025 FDD)

According to Bumble Roofing's 2025 Franchise Disclosure Document, to extend the rights to operate their Roofing Business for an additional term, a franchisee must execute a general release of all claims they may have against Bumble Roofing, its officers, directors, members, shareholders, agents, affiliates, and employees. This release covers claims arising under any federal, state, or local law, rule, or ordinance related to the Franchise Agreement, to the fullest extent permitted by law. The release must also be in a form that is satisfactory to Bumble Roofing.

In practical terms, this means that before a Bumble Roofing franchisee can renew their franchise agreement, they must sign a document that gives up their right to sue Bumble Roofing for any reason related to the franchise agreement. This includes any past issues or disputes that the franchisee may have with Bumble Roofing. This is a standard practice in franchising, as it provides the franchisor with legal protection and certainty going forward.

This requirement is significant for prospective franchisees because it means they must carefully consider any potential claims they might have against Bumble Roofing before renewing their franchise agreement. If a franchisee believes they have a valid claim, they may need to pursue it before the renewal term, or risk losing the right to do so. It is advisable for franchisees to consult with an attorney to fully understand the implications of signing a general release.

It is important to note that the Successor Franchise Agreement may contain materially different terms and conditions than the original agreement. Additionally, the franchisee will need to pay a successor franchise fee equal to the greater of $5,000 or 25% of the then-existing Initial Franchise Fee. Meeting other conditions that Bumble Roofing reasonably requires is also necessary for the extension.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.