What franchisee rights concerning termination or non-renewal are provided by California Business and Professions Code Sections 20000 through 20043 regarding the Bumble Roofing franchise?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
California Business and Professions Code Sections 20000 through 20043 provide rights to the franchisee concerning termination or non-renewal of a franchise. The Federal Bankruptcy Code also provides rights to franchisee concerning termination of the Franchise Agreement upon certain bankruptcy-related events. If the Franchise Agreement is inconsistent with the law, the law will control.
The Franchise Agreement requires binding arbitration. The arbitration will occur in Richmond, Virginia with the cost being borne equally by the parties. Prospective franchisees are encouraged to consult with private legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of a franchise agreement restricting venue to a forum outside the State of California.
The Franchise Agreement contains a covenant not to compete which extends beyond the termination of the franchise. This provision may not be enforceable under California law.
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, California Business and Professions Code Sections 20000 through 20043 provide rights to franchisees regarding the termination or non-renewal of their franchise agreements. Additionally, the Federal Bankruptcy Code offers certain protections to franchisees in the event of bankruptcy-related terminations. The FDD states that if any part of the Bumble Roofing franchise agreement is inconsistent with these laws, the law will take precedence.
This means that prospective Bumble Roofing franchisees in California should be aware of these legal protections, which could override specific terms in the standard franchise agreement. It is important for franchisees to understand their rights under both California law and federal bankruptcy law, especially concerning the conditions under which Bumble Roofing can terminate or choose not to renew the franchise agreement.
The FDD also mentions California Corporations Code Section 20010, which voids any waiver of rights under the Franchise Relations Act (Business and Professions Code Sections 20000 – 20043). This reinforces the franchisee's rights and prevents them from unknowingly relinquishing their legal protections. Prospective franchisees should consult with a legal professional to fully understand these rights and how they apply to their specific situation with Bumble Roofing.