What assets does Bumble Roofing have the option to purchase from the franchisee?
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.
- 16.5 Franchisor will notify Franchisee of its intention to exercise or not exercise its rights to purchase ("Notice of Intent") within 60 days following an event described in Section 16.1(a) or within 15 days following an event described in Section 16.1(b).
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, under certain conditions, Bumble Roofing has the option to purchase a franchisee's business assets. This option arises if the franchise agreement expires without renewal or is terminated for any reason. It also applies if Bumble Roofing receives a copy of a purchase offer from a third party that the franchisee is considering.
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 of the assets if the agreement expires or is terminated. If Bumble Roofing is responding to 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 the franchisee owes them, as well as any commissions or appraisal costs, from the purchase price. Bumble Roofing must notify the franchisee of its intent to purchase the assets within 60 days of the expiration or termination, or within 15 days of receiving the purchase offer.