Does the Bumble Roofing franchise agreement allow claims for punitive or exemplary damages?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
shareholders, employees, partners, and affiliates (collectively, the "Franchisee Releasing Parties"), Franchisor and its past, present and future officers, directors, agents, attorneys, employees, shareholders, successors, assigns, members, managers, and Affiliates (collectively, the "Franchisor Released Parties"), for all purposes, of and from any and all claims, debts, demands, damages, costs, expenses, actions, causes of action, or suits of any kind whatsoever, at common law, statutory or otherwise, whether now known or not, whether contingent or matured, including, without limitation, any claim, demand, or cause of action arising out of or in connection with Franchisee's Roofing Businesses or the Franchise Agreements or any other contractual relationship between Franchisee and Franchisor and/or any Franchisor Released Parties, which Franchisee Releasing Parties may have had or may now have directly or indirectly against any or all of Franchisor Released Parties based upon or arising out of any event, act, or omission that has occurred prior to the date hereof. Franchisee Releasing Parties further covenant and agree to never institute, prosecute or assist others to institute or prosecute, or in any way aid any claim, suit, action at law or in equity, or otherwise assert any claim against any or all of Franchisor Released Parties for any damages (actual, consequential, punitive or otherwise), injunctive relief, or other loss or injury either to person or property, cost, expense, attorneys' fees, amounts paid on account of recovery or settlement, or any other damage or harm whatsoever, based upon or arising out of any event, act, or omission that has occurred prior to the date hereof.
[The following language is included in the event the Washington Franchise Investment Protection Act, RCW 19.100 and the rules adopted thereunder apply: "The release of claims does not apply with respect to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder."]
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Bumble Roofing Franchise Disclosure Document, franchisees may be restricted from pursuing punitive damages against the franchisor. Specifically, the Successor Addendum and general release included in the franchise agreement require franchisees to release Bumble Roofing from all claims, including damages, losses, or injuries, based on events prior to the addendum's date.
This release extends to a wide range of potential claims, encompassing those arising from the franchise agreement or any other contractual relationship between the franchisee and Bumble Roofing. It explicitly includes a covenant where franchisees agree not to initiate or support any legal actions seeking damages, whether actual, consequential, or punitive. This waiver covers various forms of relief, including injunctive relief, and encompasses costs, expenses, attorney's fees, and any other form of harm.
However, there is an exception for franchisees operating in Washington state, where the release of claims does not apply to claims arising under the Washington Franchise Investment Protection Act. This means that while franchisees generally waive their right to pursue punitive damages, those in Washington retain their statutory rights under state franchise law.
For a prospective Bumble Roofing franchisee, this clause signifies a significant limitation on their ability to seek legal recourse against the franchisor for punitive damages, except under specific conditions in Washington. Franchisees should carefully consider this limitation and seek legal advice to fully understand its implications before signing the franchise agreement.