What is the potential issue with the Bumble Roofing franchise agreement requiring application of the laws of the Commonwealth of Virginia, especially for franchisees in California?

According to Bumble Roofing's 2025 Franchise Disclosure Document, a potential issue arises from the franchise agreement's requirement that the laws of the Commonwealth of Virginia apply. This provision may not be enforceable under California law. This is particularly relevant for franchisees operating in California because California has its own franchise laws and regulations designed to protect franchisees. These laws cover aspects such as termination, transfer, and non-renewal of a franchise.

California Business and Professions Code Sections 20000 through 20043 provide specific rights to franchisees in California regarding termination, transfer, or non-renewal. If the Bumble Roofing franchise agreement contains any provisions that are inconsistent with California law, the California law will take precedence. This means that even though the agreement specifies Virginia law, a California franchisee may still be able to rely on California law to protect their rights.

Prospective Bumble Roofing franchisees in California should consult with legal counsel to understand the implications of this discrepancy and to determine which laws will govern their franchise agreement. They should also be aware that other provisions in the franchise agreement, such as those related to general releases, covenants not to compete, and binding arbitration in Virginia, may also be subject to California law and may not be fully enforceable.