factual

Does the assignment of a Bumble Roofing franchise to a wholly-owned entity release the franchisee from liability under the Franchise Agreement?

Bumble_Roofing Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (e) Franchisor's consent to a transfer of any interest subject to the restrictions of this Section shall not constitute a waiver of any claim it may have against the assignor, nor shall it be deemed a waiver of Franchisor's right to demand exact compliance with any of the terms of this Agreement by the assignee;

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2025 FDD)

According to Bumble Roofing's 2025 Franchise Disclosure Document, transferring any interest that is subject to restrictions does not constitute a waiver of any claim the franchisor may have against the assignor. It also does not waive the franchisor's right to demand exact compliance with any of the terms of the Franchise Agreement by the assignee.

This means that if a Bumble Roofing franchisee assigns their franchise to a corporation, limited liability company, partnership, or other business entity, the original franchisee is not automatically released from their obligations under the Franchise Agreement. Bumble Roofing Franchisor, LLC retains the right to pursue claims against the original franchisee (the assignor) and can still require the new entity (the assignee) to fully comply with the agreement's terms.

For a prospective Bumble Roofing franchisee, this clause highlights the importance of understanding the full scope of their obligations even if they later decide to operate the franchise through a separate business entity. The franchisee should seek legal counsel to fully understand the implications of assigning the franchise and the potential for ongoing liability.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.