Under what circumstance regarding bankruptcy does the Bumble Roofing franchise agreement provide for termination?

According to the 2025 Bumble Roofing Franchise Disclosure Document, the franchise agreement contains provisions for termination upon the bankruptcy of the franchisee. However, the FDD includes additional disclosures for franchisees in Maryland and Virginia. For Maryland franchisees, the document states that Bumble Roofing's termination of the Franchise Agreement due to bankruptcy may not be enforceable under applicable federal law. Similarly, for franchisees in Virginia, any provision in the contracts that provides for termination of the franchise upon the bankruptcy of the franchisee may not be enforceable under federal bankruptcy law.

This means that while the standard Bumble Roofing franchise agreement likely includes a clause allowing termination if a franchisee declares bankruptcy, this clause's enforceability is questionable, particularly in Maryland and Virginia, due to federal law. Federal bankruptcy laws may override the franchise agreement's termination clause, potentially preventing Bumble Roofing from terminating the agreement solely based on the franchisee's bankruptcy.

Prospective franchisees should be aware that the enforceability of such clauses can vary by jurisdiction and are subject to interpretation by the courts. It is advisable to seek legal counsel to understand the specific implications of bankruptcy clauses in the franchise agreement and how they interact with federal and state laws. Franchisees should inquire with Bumble Roofing about the specific conditions under which termination due to bankruptcy would be pursued and the legal basis for such actions, given the disclosures about potential unenforceability.