What is the purpose of the Maryland Addendum to the Bumble Roofing Franchise Agreement?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
ROOFING FRANCHISOR, LLC Its: Its:
MARYLAND ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT
Special Risks Page, Additional Disclosures
Ownership Change: The franchisor recently had a change of ownership. The support provided by the franchisor may be different from previous owners. Therefore, the expenses related to operating the franchise and the potential revenue you might achieve may be different from past performance.
Item 5
Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement.
Item 17, Additional Disclosures:
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.).
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
- Notwithstanding anything to the contrary contained in the Franchise Agreement, to the extent that the Franchise Agreement contains provisions that are inconsistent with the following, such provisions are hereby amended:
All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
The Franchise Agreement provides that disputes are resolved through arbitration.
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, the Maryland Addendum modifies the standard franchise agreement to comply with the Maryland Franchise Registration and Disclosure Law. It addresses specific legal requirements and potential conflicts between the standard agreement and Maryland law. The addendum ensures that franchisees in Maryland receive certain protections and disclosures as mandated by state regulations.
Specifically, the Maryland Addendum addresses issues such as the franchisor's financial condition, requiring a financial assurance from the Maryland Securities Commissioner. This assurance leads to the deferral of initial fees and payments from franchisees until Bumble Roofing completes its pre-opening obligations. The addendum also clarifies that termination of the Franchise Agreement due to the franchisee's bankruptcy may not be enforceable under federal law.
Furthermore, the addendum ensures that franchisees can bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, with a statute of limitations of 3 years. It also specifies that general releases required for renewal, sale, or transfer do not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. The addendum also addresses potential conflicts related to dispute resolution through arbitration, acknowledging a Maryland regulation that considers it an unfair practice to waive the right to file a lawsuit in Maryland for violations of Maryland Franchise Law.
In addition to the standard Franchise Agreement addendum, there is also a Maryland Addendum to the Aggregate Reporting Addendum to Franchise Agreement. This addendum ensures that any representations requiring prospective franchisees to assent to a release, estoppel, or waiver of liability do not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. It also states that the general release required as a condition of sale shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law, pursuant to COMAR 02.02.08.16L.