Does Bumble Roofing require franchisees to sign a specific agreement to renew their franchise?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
California is 10% annually.
Item 17, Additional Disclosures:
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, transfer or non-renewal of a franchise. If the franchise agreement contains a provision that is inconsistent with the law, the law will control.
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 franchise agreement requires franchisees in California to execute a general release of claims upon renewal. However, California Corporations Code Section 31512 states that any condition that binds a person acquiring a franchise to waive compliance with any provision of that law is void. This means that the requirement to sign a general release upon renewal may not be enforceable in California.
In Maryland, the general release required as a condition of renewal will not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This ensures that franchisees in Maryland do not waive their rights under Maryland franchise law when renewing their agreement with Bumble Roofing.
For franchisees in New York, any provision in the Franchise Agreement requiring them to sign a general release of claims against Bumble Roofing does not release any claim the franchisee may have under New York General Business Law, Article 33, Sections 680-695. This protects the franchisee's rights under New York franchise law during the renewal process.
It is important for prospective franchisees to be aware of these state-specific addenda, as they modify the standard franchise agreement and provide additional protections or clarify obligations based on local laws. Franchisees should consult with a legal professional to fully understand their rights and obligations in their specific state.