factual

Does the release of claims in the Bumble Roofing agreement include claims that are not yet known?

Bumble_Roofing Franchise · 2025 FDD

Answer from 2025 FDD Document

ERATING STANDARDS. | | 5. | section. | ATTACHMENT A. | with "Successor Franchise Fee" in both the heading and in the first sentence of this | | | | In Section 2 of Attachment A, the phrase "Initial Franchise Fee" is replaced |

  1. RELEASE OF CLAIMS. As of the date of this Successor Addendum, in consideration for Franchisor entering into the Successor Franchise Agreement, Franchisee does hereby compromise, settle, and absolutely, unconditionally, and fully release, discharge, and hold harmless for itself and each of its respective heirs, executors, administrators, representatives, successors, assigns, officers, members, managers, directors, 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 Business or the Franchise Agreement or any other contractual relation 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."]

    1. MISCELLANEOUS. This Successor Addendum will be binding upon and inure to the benefit of each party and to each party's respective successors and assigns. Any terms not defined in this Successor Addendum have the meaning given to the terms in the Successor Franchise Agreement.
    1. NO FURTHER CHANGES. Except as specifically provided in this Successor Addendum, all of the terms, conditions and provisions of the Successor Franchise Agreement will remain in full force and effect as originally written and signed.

IN WITNESS WHEREOF, Franchisor and Franchisee have duly executed this Successor Addendum as of the date first above written.

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2025 FDD)

According to Bumble Roofing's 2025 Franchise Disclosure Document, the release of claims in the Successor Franchise Agreement includes claims whether now known or not. As part of the agreement, the franchisee releases Bumble Roofing from any and all claims, debts, demands, damages, costs, expenses, actions, or suits of any kind, whether known or unknown, that the franchisee may have against Bumble Roofing. This release extends to claims arising from any event, act, or omission that occurred before the date of the Successor Addendum.

This means that a franchisee is giving up their right to sue Bumble Roofing for anything that has happened up to the point of signing the Successor Franchise Agreement, even if they are not yet aware of the basis for such a claim. This could include unknown breaches of contract, hidden damages, or other issues that have not yet come to light. The franchisee also agrees not to assist others in pursuing claims against Bumble Roofing.

Furthermore, franchisees in California waive their rights under Section 1542 of the California Civil Code, which normally protects them from releasing claims they don't know about at the time of signing the release. This waiver emphasizes the intent to provide a complete release, regardless of the discovery of additional facts. However, 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.

Prospective franchisees should carefully consider the implications of this broad release, as it could prevent them from pursuing legal action against Bumble Roofing for issues that arise in the future but are based on past events. It is advisable to seek legal counsel to fully understand the scope and impact of this release before signing the Successor Franchise Agreement.

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.