What is a prospective Bumble Roofing franchisee encouraged to do regarding the arbitration venue provision?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
w governs the agreements between the parties to this franchise.
Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a franchise agreement may provide for arbitration outside of Illinois.
Section 41 of the Illinois Franchise Disclosure Act provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
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.
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, prospective franchisees in certain states should be aware of specific addenda that address the enforceability of venue provisions, particularly those requiring disputes to be resolved outside of their home state. For example, the Illinois Addendum states that while the franchise agreement may provide for arbitration outside of Illinois, any provision designating jurisdiction or venue outside the state is void under Illinois law. Similarly, the Rhode Island Addendum specifies that any franchise agreement provision restricting jurisdiction or venue to a forum outside of Rhode Island, or requiring the application of another state's laws, is void with respect to claims enforceable under the Rhode Island Franchise Investment Act.
These addenda serve to protect franchisees' rights by ensuring they are not forced to litigate or arbitrate disputes in a distant or inconvenient location. This is particularly important because out-of-state venues can increase the cost and complexity of resolving disputes, potentially deterring franchisees from pursuing legitimate claims against Bumble Roofing. The addenda essentially level the playing field, allowing franchisees to pursue legal remedies within their own state, where they are likely to be more familiar with the laws and procedures.
Therefore, a prospective Bumble Roofing franchisee should carefully review the state-specific addendum applicable to their location to understand their rights regarding dispute resolution. They should also consult with an attorney to fully understand the implications of the arbitration and venue provisions in the franchise agreement and how they are affected by state law. This due diligence can help franchisees make informed decisions and protect their interests in the event of a dispute with Bumble Roofing.