What assets of the Bumble Roofing franchisee does the Franchisor have the option to purchase?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) The expiration without the extension of Franchisee's rights to operate the Roofing Business or the termination for any reason of the License or this Agreement; or
(b) The receipt by Franchisor of a copy of a Purchase Offer.
16.2 Upon any event described in this Section 16.2, Franchisor shall have the option to purchase all of Franchisee's rights, title and interest in the Business, and all its improvements, furniture, fixtures, equipment and products, and all of Franchisee's accounts, contract rights, customer and vendor lists, work in progress and other business assets.
16.3 The purchase price for assets itemized in Section 16.2 will be, subject to Section 16.4: (i) the current fair market value if Section 16.1(a) is applicable; or (ii) the price specified in the Purchase Offer received by Franchisee if Section 16.1(b) is applicable.
If Franchisee and Franchisor cannot agree on fair market value within a reasonable time, an independent appraiser will be designated by each of Franchisee and Franchisor and an average of the 2 appraised values will be binding.
Appraised values will exclude any and all consideration for goodwill or going concern value created by the Marks and business system licensed to Franchisee.
- 16.4 If Franchisor elects to exercise any option to purchase provided in this Section 16 Franchisor will have the right to set off all amounts due from Franchisee under this Agreement or any other agreements between the parties, any commissions or fees payable to any broker, agent or other intermediary and the cost of the appraisal, if any, against any payment.
Franchisee shall also have the right to substitute cash for any other form of consideration specified in the Purchase Offer and to pay in full the entire purchase price at the time of closing.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, under certain conditions, the franchisor has the option to purchase the franchisee's business assets. Specifically, Bumble Roofing can exercise this option upon the expiration or termination of the franchise agreement, or if the franchisor receives a purchase offer for the franchisee's business.
If either of these events occurs, Bumble Roofing has the option to purchase all of the franchisee's rights, title, and interest in the business. This includes all improvements, furniture, fixtures, equipment, products, accounts, contract rights, customer and vendor lists, work in progress, and other business assets.
The purchase price will be the current fair market value if the option is exercised due to the expiration or termination of the agreement. If the option is triggered by a purchase offer received by the franchisee, the purchase price will be the price specified in that offer. However, the appraised value will exclude any consideration for goodwill or the value of the Bumble Roofing brand itself. Bumble Roofing also has the right to deduct any amounts owed by the franchisee, commissions, fees, or appraisal costs from the purchase price.