Does the release of claims against Bumble Roofing extend to the Guarantors of the Franchisee?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
o exist regarding the subject matter of the release contained in this Section 2, and which, if known at the time of signing this Agreement, may have materially affected this Agreement and its decision to enter into it and grant the release contained in this Section 2. 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.
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 the Guarantors of the Franchisee. The document states that both the Franchisee and the Guarantors intend to settle and release all claims against Bumble Roofing. This release covers all claims that exist, may exist, or previously existed, whether known or unknown, foreseen or unforeseen, or suspected or unsuspected.
This means that the Guarantors, who are typically individuals or entities guaranteeing the Franchisee's obligations, are also giving up their rights to sue Bumble Roofing for any past, present, or future issues related to the franchise agreement. This is a significant point for anyone considering acting as a Guarantor, as they are relinquishing their legal recourse against the franchisor.
Furthermore, the Franchisee and Guarantors also represent and warrant that they are not aware of any claim not covered by this release, have not assigned any released claims to another party, and have the full authority to grant these releases. In California, the Franchisee and Guarantors specifically waive their rights under Section 1542 of the California Civil Code, which protects against releasing unknown claims. This waiver emphasizes the comprehensive nature of the release, ensuring that all potential claims, even those not yet known, are included in the release. Franchisees and Guarantors should be fully aware of the implications before signing.