Under what grounds can a Bumble Roofing franchisee terminate the franchise agreement?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
Any provision in any of the contracts that you sign with us which provides for termination of the franchise upon the bankruptcy of the franchisee may not be enforceable under federal bankruptcy law (11 U.S.C. 101 et. seq.).
"According to Section 13.1 – 564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in the franchise agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable."
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, the grounds for a franchisee to terminate the franchise agreement are not explicitly detailed in the provided excerpts. However, the document does provide some information regarding termination rights and limitations, particularly concerning state laws.
Specifically, the Virginia Addendum notes that under Section 13.1 – 564 of the Virginia Retail Franchising Act, Bumble Roofing cannot cancel a franchise without reasonable cause. If any grounds for default or termination stated in the franchise agreement do not constitute "reasonable cause" as defined by the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable. Similarly, the Maryland Addendum indicates that general releases required as a condition of renewal, sale, or transfer will not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
Furthermore, the Bumble Roofing FDD states that the termination of the Franchise Agreement due to the franchisee's bankruptcy may not be enforceable under applicable federal law. The California Addendum also points out that any condition requiring a franchisee to waive compliance with any provision of the California Franchise Investment Law or the California Franchise Relations Act is void. Therefore, a prospective franchisee should carefully review the franchise agreement, paying close attention to the specific conditions under which they can terminate the agreement, and how these conditions interact with state and federal laws. It would be prudent to consult with a franchise attorney to fully understand their termination rights and obligations.