What are the Bumble Roofing franchisee's obligations upon termination or non-renewal of the Franchise Agreement?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement or Other Agreement | Summary | |
|---|---|---|---|
| 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. |
The franchise agreement requires franchisee to execute a general release of claims upon renewal or transfer of the franchise agreement. California Corporations Code Section 31512 provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of that law or any rule or order there under is void. Section 31512 voids a waiver of your rights under the Franchise Investment Law (California Corporations Code Section 20010 voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code Sections 20000 – 20043).
The franchise agreement requires application of the laws of the Commonwealth of Virginia. This provision may not be enforceable under California law.
California Business and Professions Code Sections 20000 through 20043 provide rights to the franchisee concerning termination or non-renewal of a franchise.
Your rights upon termination and non-renewal of a franchise agreement are set forth in section 19 and 20 of the Illinois Franchise Disclosure Act.
Our termination of the Franchise Agreement because of your bankruptcy may not be enforceable under applicable federal law (11 U.S.C.A. 101 et seq.).
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–45)
What This Means (2025 FDD)
According to the 2025 Bumble Roofing Franchise Disclosure Document, a franchisee has non-competition obligations after the franchise is terminated or expires. Specifically, for two years, the franchisee cannot be involved in a Competitive Business (defined as any business offering and selling roofing installation, maintenance, and repairs, and related products and services, for residential and commercial customers) (i) in the Territory or any other Franchisee's Territory; (ii) within 10 miles of the Territory or any other Franchisee's Territory or (iii) within 10 miles of any of Bumble Roofing's or its affiliate owned Roofing Business. These obligations are detailed in Sections 14 and 17 of the Franchise Agreement.
Additionally, the FDD includes addenda for franchisees in certain states that may impact the enforcement of certain provisions of the franchise agreement. For example, in California, the franchise agreement requires franchisees to execute a general release of claims upon renewal or transfer of the franchise agreement. However, California Corporations Code Section 31512 voids any provision purporting to bind any person acquiring any franchise to waive compliance with any provision of that law. Similarly, the franchise agreement requires application of the laws of the Commonwealth of Virginia, but this provision may not be enforceable under California law. California Business and Professions Code Sections 20000 through 20043 provide rights to the franchisee concerning termination or non-renewal of a franchise.
In Illinois, the franchisee's rights upon termination and non-renewal of a franchise agreement are set forth in section 19 and 20 of the Illinois Franchise Disclosure Act. Therefore, prospective franchisees should carefully review the specific terms of the Franchise Agreement, as well as any applicable state laws, to fully understand their obligations upon termination or non-renewal. It is also important to note that our termination of the Franchise Agreement because of your bankruptcy may not be enforceable under applicable federal law (11 U.S.C.A. 101 et seq.).