For Bumble Roofing, is the Designated Business Manager required to own a beneficial interest in the business entity?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
You must directly supervise the Roofing Business at your franchised location. The direct, on-site supervision must be done by a Designated Business Manager, which could be one of your employees. The Designated Business Manager is not required to own a beneficial interest in the business entity. In addition to the Designated Business Manager, you must have at least one designated individual who conducts sales or performs back office administrative services on a full-time basis.
If we believe you lack sufficient business experience, you must designate a Designated Business Manager to act as the operating manager for your Roofing Business. We must approve the selection of the Designated Business Manager before signing the Franchise Agreement. The Designated Business Manager must attend and successfully complete the initial training program, and must abide by the obligations in the Franchise Agreement and the Operating Manual. The Designated Business Manager must agree to the same confidentiality and non-competition obligations that you are required to abide by (see Attachment A to the Franchise Agreement).
Each individual who owns, directly or indirectly, a 5% or greater interest in you (and, if you sign the Franchise Agreement as an individual, your immediate family defined as your spouse and domestic partner) must sign the Guaranty and Assumption of Franchisee's Obligations assuming and agreeing to discharge all of your obligations and comply with all restrictions under the Franchise Agreement (See Attachment B to the Franchise Agreement).
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 42)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the Designated Business Manager is not required to own a beneficial interest in the business entity. The franchisee must directly supervise the Roofing Business at their franchised location, and this supervision must be done by a Designated Business Manager, who could be one of the franchisee's employees.
If Bumble Roofing believes the franchisee lacks sufficient business experience, they must designate a Designated Business Manager to act as the operating manager for their Roofing Business. Bumble Roofing must approve the selection of the Designated Business Manager before the Franchise Agreement is signed. The Designated Business Manager must attend and successfully complete the initial training program and must abide by the obligations in the Franchise Agreement and the Operating Manual.
The Designated Business Manager must agree to the same confidentiality and non-competition obligations that the franchisee is required to abide by. Each individual who owns, directly or indirectly, a 5% or greater interest in the franchisee must sign the Guaranty and Assumption of Franchisee's Obligations, assuming and agreeing to discharge all of the franchisee's obligations and comply with all restrictions under the Franchise Agreement.