What effect do statements or acknowledgments signed by a Bumble Roofing franchisee have on disclaiming reliance on statements made by the franchisor?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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, any statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise relationship does not waive claims under state franchise law. This includes claims of fraud. These documents also cannot disclaim reliance on statements made by Bumble Roofing, its franchise sellers, or anyone acting on the company's behalf. This rule overrides any conflicting terms in any document related to the franchise agreement. This protection is further reinforced by addenda specific to certain states like Illinois, New York, Virginia, and Washington, ensuring that franchisees in those states retain their rights under local franchise laws, regardless of any agreements to the contrary.
This provision is highly favorable for prospective Bumble Roofing franchisees. It prevents the franchisor from using standard form agreements to shield itself from liability for misrepresentations or violations of franchise laws. Franchisees retain the ability to pursue legal claims based on misleading statements or non-compliance with state laws, even if they have signed documents that appear to waive those rights. This ensures that franchisees are not bound by unfair or deceptive practices by the franchisor during the initial stages of the franchise relationship.
However, franchisees should be aware that these protections may be limited to claims arising under state franchise laws and do not necessarily cover other types of disputes. Additionally, the specific terms and conditions of the franchise agreement and any state-specific addenda should be carefully reviewed to fully understand the scope of these protections. It is also important to note that in Washington, a release or waiver of rights is permissible if executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel.
In practice, this means that if a Bumble Roofing franchisee believes they were misled by the franchisor during the sales process, they can still bring a claim for fraud or misrepresentation, even if they signed a document acknowledging that they were not relying on any statements made by the franchisor. This provision provides an important safeguard for franchisees and helps to ensure that franchisors are held accountable for their representations.