Can Bumble Roofing assign the System to a licensed system?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
4.1 During the Initial Term and any Interim Period and for so long as Franchisee is in compliance with all of its obligations hereunder, except as otherwise provided in this Agreement, including Franchisor's reservation of rights as set forth in Sections 4.2, 4.4 and 4.7, neither Franchisor nor any Affiliate will establish or license another person or entity to establish a Roofing Business using the Marks licensed to Franchisee within the Territory encompassed by the boundaries and with the population base set forth in Attachment A, attached hereto and incorporated herein by reference. Except as otherwise specifically provided in this Agreement, this Agreement does not restrict Franchisor or its Affiliates and does not grant rights to Franchisee to pursue any of Franchisor's or its Affiliates other business concepts other than the Roofing Business.
4.2 Franchisee acknowledges that Franchise granted hereunder is non-exclusive and that Franchisor and its Affiliates retain the exclusive right, among others:
- (a) to use, and to license others to use, the Marks and System for the operation of Roofing Businesses at any location other than in the Territory, regardless of proximity to the Territory;
- (b) to use, license or franchise the use of trademarks or service marks other than the Marks, whether in alternative channels of distribution or at any location including the Territory, in association with operations that are the same as, similar to or different than Roofing Business;
(c) to use the Marks and the System in connection with the provision of other services and products or in alternative channels of distribution such as those described in 4.2(d), at any location including the Territory;
(d) to offer the Services or Products, or grant others the right to offer the Services or Products, whether using the Marks or other trademarks or service marks, through alternative channels of distribution, including without limitation, wholesalers, retail outlets or other distribution outlets (other than Roofing Businesses), or by Internet commerce (e-commerce), mail order or otherwise, whether inside or outside the Territory;
(e) to use any websites utilizing a domain name incorporating one or more of the words "Bumble Roofing" or similar derivatives thereof.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Bumble Roofing Franchise Disclosure Document, Bumble Roofing retains the right to license others to use the System for Roofing Businesses at any location outside the franchisee's territory. This means that while a franchisee is in compliance with their agreement, Bumble Roofing will not establish or license another person or entity to establish a Roofing Business using the Marks within the franchisee's defined territory. However, Bumble Roofing maintains the right to operate or license others outside of this territory, regardless of proximity.
Bumble Roofing also retains the right to use, license, or franchise other trademarks or service marks, even those similar to the Roofing Business, in any location, including within the franchisee's territory. They can also use the Marks and the System to provide other services and products or through alternative channels of distribution, such as wholesalers, retail outlets, e-commerce, or mail order, whether inside or outside the franchisee's territory.
Furthermore, Bumble Roofing can use any websites with domain names incorporating "Bumble Roofing" or similar terms. This indicates that the franchisee's rights are limited to the specific territory granted and do not extend to preventing Bumble Roofing from engaging in similar business activities through different channels or under different brands, even within the same area. This could create competition for the franchisee, as Bumble Roofing could potentially license other businesses or operate alternative services in the same market.