Does the release of claims against Bumble Roofing extend to claims that are currently unknown?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
b. Franchisee and Guarantors represent and warrant as follows: (i) none of them are aware of any Claim that is not covered by the release contained in this Section 2, (ii) none of them have assigned or transferred any of the Claims released herein to any person or entity and no person or entity has subrogated to or has any interest or rights in any Claims, and (iii) each of them has the full right, power, and authority to enter into this Agreement, to grant on behalf of itself and the other Franchisee Parties the releases contained herein, and to perform its obligations hereunder.
[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, the release of claims extends to those that are currently unknown. Franchisees and guarantors agree to settle and release all claims, whether they currently exist, may exist, or previously existed. This includes claims that are known or unknown, foreseen or unforeseen, or suspected or unsuspected. The release remains effective even if additional or different facts are discovered later, and franchisees waive any rights to claims arising from such new information.
This broad release of claims has significant implications for prospective Bumble Roofing franchisees. By signing the franchise agreement, franchisees agree to release Bumble Roofing from any and all claims, even those they are not currently aware of. This could potentially prevent franchisees from pursuing legal action against Bumble Roofing in the future, even if they later discover that they have a valid claim.
However, the FDD also includes California-specific language regarding Section 1542 of the California Civil Code, which states that a general release does not extend to unknown claims if those claims would have materially affected the settlement. Franchisees operating in California waive their rights under Section 1542, acknowledging that they have had adequate opportunity to gather all necessary information before entering into the agreement.
It is important for prospective Bumble Roofing franchisees to carefully consider the implications of this release of claims and to seek legal advice if they have any concerns. Franchisees should conduct thorough due diligence before signing the franchise agreement to ensure they are fully aware of all potential claims they may have against Bumble Roofing.