Upon renewal or transfer of a Bumble Roofing franchise agreement, what does the franchise agreement require the franchisee to execute?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
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).
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 the franchisee to execute a general release of claims upon renewal or transfer of the franchise agreement. This requirement means that as a condition of renewing their franchise agreement or transferring it to a new owner, a franchisee must sign a document releasing Bumble Roofing from any potential legal claims they may have against the company.
However, the FDD includes state-specific addenda that may modify this requirement. For example, the California addendum states that California Corporations Code Section 31512 voids any condition that requires a franchisee to waive compliance with any provision of that law. Similarly, the Maryland addendum states that the general release required as a condition of sale shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
Prospective Bumble Roofing franchisees should carefully review the addenda applicable to their state to understand how these state laws may affect the enforceability of the general release. They should also consult with a legal professional to fully understand the implications of signing a general release and how it might impact their rights as a franchisee, particularly in light of state-specific franchise laws.