What state's law governs the Bumble Roofing Franchise Agreement?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
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ILLINOIS ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT
To the extent the Illinois Franchise Disclosure Act, Ill. Comp. Stat. §§705/1 – 705/44 applies, the terms of this Addendum apply.
Item 17, Additional Disclosures. The following statements are added to Item 17:
Illinois law 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.
Exhibit G, Additional Disclosure:
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.
ILLINOIS ADDENDUM TO FRANCHISE AGREEMENT
To the extent the Illinois Franchise Disclosure Act, Ill. Comp. Stat. §§705/1 – 705/44 applies, the terms of this Addendum apply.
1.
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 Illinois Addendum states that Illinois law governs the agreements between the parties to the franchise. However, the California Addendum indicates that the franchise agreement requires application of the laws of the Commonwealth of Virginia, but this provision may not be enforceable under California law. The New York Addendum states that the New York Franchise Law shall govern any claim arising under that law. Finally, the Rhode Island Addendum states that any provision in a franchise agreement requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act.
This means that the specific state law governing the Bumble Roofing Franchise Agreement can vary depending on the state in which the franchisee is operating. In Illinois, Illinois law governs the agreement. In California, while the agreement may state Virginia law applies, this may not be enforceable, and California law may take precedence. In New York, the New York Franchise Law governs any claim arising under that law. In Rhode Island, the application of another state's laws is voided by the Rhode Island Franchise Investment Act.
For a prospective Bumble Roofing franchisee, this highlights the importance of understanding the specific addendum for their state. The franchisee should consult with a legal professional to fully understand which state laws will govern their franchise agreement and how those laws may impact their rights and obligations. This is especially important in states like California and Rhode Island, where certain provisions of the franchise agreement may not be enforceable due to state-specific franchise laws.
It's also important to note that the presence of conflicting governing law provisions could lead to legal disputes. Franchisees should be aware of this potential conflict and seek clarification from Bumble Roofing regarding which state's laws are intended to govern the agreement in their specific situation. This could involve negotiating the terms of the franchise agreement to ensure clarity and avoid future legal complications.