For a Bumble Roofing franchise, what claims are exempt from the required mediation and arbitration?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
forceable under applicable federal law (11 U.S.C.A. 101 et seq.).
You may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
The general release required as a condition of renewal, sale and/or assignment/transfer will not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
This franchise agreement provides that disputes are resolved through arbitration. A Maryland franchise regulation states that it is an unfair or deceptive practice to require a franchisee to waive its right to file a lawsuit in Maryland claiming a violation of the Maryland Franchise Law. In light of the Federal Arbitration Act, there is some dispute as to whether this forum selection requirement is legally enforceable.
This addendum applies to residents of the State of Maryland and franchises to be located in the State of Maryland and franchises to be operated in the State of Maryland.
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.
Exhibit G, Acknowledgment Addendum:
Exhibit G (Acknowledgment Addendum) to the FDD is deleted in its entirety.
MARYLAND ADDENDUM TO FRANCHISE AGREEMENT
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, certain state laws provide exceptions to the standard mediation and arbitration requirements outlined in the franchise agreement. For instance, in Maryland, a franchisee can bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, and these claims must be brought within 3 years after the grant of the franchise. Additionally, the general release required as a condition of renewal, sale, or transfer will not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
In New York, any provision requiring a franchisee to sign a general release of claims against Bumble Roofing does not release any claim the franchisee may have under the New York General Business Law, Article 33, Sections 680-695. The New York Franchise Law governs any claim arising under that law. Similarly, in Washington, the waiver in Section 15.3 of the Franchise Agreement does not apply to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and its rules.
Furthermore, in both Maryland and Washington, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under applicable state franchise laws, including fraud in the inducement, or disclaim reliance on statements made by Bumble Roofing or its representatives. In Rhode Island, a provision in a franchise agreement restricting jurisdiction or venue to a forum outside of Rhode Island or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act.