Where will arbitration occur according to the Bumble Roofing franchise agreement?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement or Other Agreement | Summary | |
|---|---|---|---|
| q. | Non-competition covenants during the term of the franchise | Section 14 of Franchise Agreement | No involvement in Competitive Business. A "Competitive Business" is any business offering and selling roofing installation, maintenance, and repairs, and related products and services, for residential and commercial customers. |
| r. | Non-competition covenants after the franchise is terminated or expires | Sections 14, 17 of Franchise Agreement | Franchise Agreement: No Competitive Business for 2 years (i) in the Territory or any other Franchisee's Territory; (ii) 10 miles of the Territory or any other Franchisee's Territory or (iii) 10 miles of any of our or our affiliate owned Roofing Business. |
| S. | Modification of the agreement | Sections 2.3, 7.3 & 20.11 of Franchise Agreement | Franchise Agreement: No modifications of Franchise Agreement during term unless mutually agreed upon in writing, but Operating Manual subject to change. Modifications permitted on renewal. |
| t. | Integration/merger clause | Section 20.5 of Franchise Agreement | Only the terms of the franchise agreement are binding (subject to state law). Any representations or promises outside of the disclosure document, franchise agreement may not be enforceable. |
| u. | Dispute resolution by arbitration or mediation | Section 19 of Franchise Agreement | Except for certain claims, all disputes must first be submitted to non-binding mediation, and if unsuccessful, then arbitrated in Virginia, subject to state law |
| v. | Choice of forum | Sections 19.1 & 20.1 | Mediation and arbitration must be in Virginia, subject to state law |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–45)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, disputes will first be submitted to non-binding mediation, and if that is unsuccessful, then arbitrated in Virginia. However, this is subject to state law. This means that while the franchise agreement specifies Virginia as the location for mediation and arbitration, state laws may override this provision, potentially requiring these processes to occur in the franchisee's state.
For a prospective Bumble Roofing franchisee, this is important because the cost and inconvenience of traveling to Virginia for dispute resolution could be significant. Depending on the franchisee's location, local state laws might offer protection by mandating that mediation or arbitration take place within their own state, regardless of what the franchise agreement states.
Several state-specific addenda included in the FDD modify the choice of forum and choice of law provisions, highlighting that the enforceability of the Virginia location depends on the franchisee's location. For example, the Illinois addendum states that any provision designating jurisdiction or venue outside of Illinois is void, although arbitration outside of Illinois is permitted. Similarly, the Rhode Island Franchise Investment Act voids any provision restricting jurisdiction or venue to a forum outside of Rhode Island. Therefore, prospective franchisees should carefully review the addendum for their specific state to understand their rights and obligations regarding dispute resolution.