Does the Bumble Roofing franchisee waive claims related to the transfer of assets to any other party?
Bumble_Roofing Franchise · 2025 FDDAnswer 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;
Nevertheless, Franchisee and Guarantors, on behalf of themselves and the other Franchisee Parties, intend to fully, finally and forever settle and release all Claims that now exist, may exist, or previously existed, as set out in the release contained in this Section 2, whether known or unknown, foreseen or unforeseen, or suspected or unsuspected, and the release given herein is and will remain in effect as a complete release, notwithstanding the discovery or existence of such additional or
different facts. The Franchisee Parties hereby waive any right or Claim that might arise as a result of such different or additional Claims or facts.
[California-specific language: Franchisee and Guarantors, on behalf of the Franchisee Parties, waive all rights and protections that they have or may have under Section 1542 of the California Civil Code. Section 1542 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.
Franchisee and Guarantors, on behalf of the Franchisee Parties, acknowledge and agree that the foregoing waiver of Section 1542 is an essential, integral and material term of this release and that they have had adequate opportunity to gather all information necessary to enter into this Amendment and to grant the releases contained herein, and need no further information or knowledge of any kind that would otherwise influence the decision to enter into this Amendment.]
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Bumble Roofing Franchise Disclosure Document, franchisees may be required to sign a release of claims against the franchisor under certain circumstances. Specifically, when a franchisee enters into a Successor Franchise Agreement, they must execute a general release of all claims they may have against Bumble Roofing and its affiliates. This release covers claims arising under any federal, state, or local law related to the Franchise Agreement, to the fullest extent permitted by law, and must be in a form satisfactory to Bumble Roofing.
Additionally, the FDD states that franchisees and guarantors intend to fully settle and release all claims that now exist, may exist, or previously existed, as outlined in the release within Section 2 of the agreement. This release encompasses both known and unknown claims, foreseen and unforeseen circumstances, and suspected or unsuspected issues. Franchisees waive any rights or claims that might arise from different or additional claims or facts.
For franchisees in California, there is a specific waiver of rights under Section 1542 of the California Civil Code, which pertains to claims unknown at the time of executing the release. By agreeing to this waiver, franchisees acknowledge that they have had adequate opportunity to gather all necessary information and are entering into the agreement with a full understanding of its implications.
These clauses mean that a Bumble Roofing franchisee gives up the right to sue the franchisor for issues that occurred before the release was signed. This is a significant consideration for prospective franchisees, as it limits their legal recourse against the franchisor. Franchisees should carefully review and understand the scope of the release before signing any agreements.