What are the requirements for a Bumble Roofing franchisee to renew or extend the franchise term?
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.
The franchise agreement provides for termination upon bankruptcy.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–45)
What This Means (2025 FDD)
Based on the 2025 Bumble Roofing Franchise Disclosure Document, Item 17 includes addenda that refer to state-specific regulations regarding franchise agreements, including those related to renewal. For example, the California addendum notes that the franchise agreement typically requires franchisees to execute a general release of claims upon renewal. However, it also states that California Corporations Code Section 31512 voids any waiver of rights under the Franchise Investment Law. This means that while Bumble Roofing's standard agreement may include a general release, California franchisees cannot waive their rights under California law as a condition of renewal.
Similarly, the Maryland addendum addresses releases and waivers, stating 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. This implies that Bumble Roofing franchisees in Maryland also cannot be compelled to release certain liabilities to renew their franchise. The New York addendum also specifies that any provision requiring a general release of claims does not release any claim the franchisee may have under the New York General Business Law.
These state-specific addenda highlight the importance of understanding the legal landscape in the franchisee's particular state. While the Bumble Roofing franchise agreement may have standard renewal requirements, these are subject to modification based on state laws designed to protect franchisees. A prospective franchisee should carefully review the addendum applicable to their state and consult with legal counsel to fully understand their rights and obligations regarding renewal.