Can Bumble Roofing assign its system to an operator of a competing business?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) to acquire businesses that are the same as or similar to the Roofing Business and operate such businesses regardless of where such businesses are located, including inside the Territory and to be acquired by any third party which operates businesses that are the same as or similar to the Roofing Business regardless of where such businesses are located, including inside the Territory; and
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
Based on the 2025 Bumble Roofing Franchise Disclosure Document, Bumble Roofing retains significant rights regarding the use of its Marks and System. Specifically, Bumble Roofing has the right to acquire businesses similar to the Roofing Business and operate them, regardless of location, including within a franchisee's territory. Additionally, Bumble Roofing can be acquired by a third party that operates similar businesses, even within a franchisee's territory.
This means that Bumble Roofing retains the right to operate or allow others to operate businesses that compete with its franchisees, even within the franchisee's exclusive territory. This could include acquiring a competing roofing business and continuing to operate it under a different brand, or being acquired by a company that already owns competing businesses.
For a prospective Bumble Roofing franchisee, this clause represents a potential risk. While franchisees are granted a territory, Bumble Roofing retains considerable latitude to introduce competition within that territory through acquisitions or other means. It is important for potential franchisees to understand these terms and consider how they might impact their business before investing in a Bumble Roofing franchise.