Who is designated as a third-party beneficiary on the non-disclosure and non-competition agreements required by Bumble Roofing?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor will be designated as a third-party beneficiary on such nondisclosure and noncompetition agreements.
- (c) After the Agreement expires or is terminated, Franchisee, and Franchisees' owners, guarantors, Designated Business Managers and employees who have access to the Confidential Information and Trade Secrets agree that for a period of 2 years after the termination or expiration of the Agreement (unless such information is a Trade Secret in which case the requirements in this Section 14.1(c) will remain in place for as long as such information constitutes a Trade Secret) they: (1) will not use the Confidential Information or Trade Secrets in any other business or capacity or for their own benefit; (2) will maintain the absolute confidentiality of the Confidential Information and Trade Secrets; (3) will not make unauthorized copies of any portion of the Confidential Information or Trade Secrets; and (4) will adopt and implement all reasonable procedures Franchisor periodically requires to prevent unauthorized use or disclosure of the Confidential Information and Trade Secrets including requiring written non-disclosure and noncompetition agreements for those individuals as Franchisor may require and provide Franchisor, at Franchisor's request, with signed copies of each of those agreements.
Franchisor will be designated as a third-party beneficiary on such nondisclosure and noncompetition agreements.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Bumble Roofing Franchise Disclosure Document, Bumble Roofing Franchisor, LLC will be designated as a third-party beneficiary on the non-disclosure and non-competition agreements. This means that Bumble Roofing has specific rights and can enforce these agreements even though they are made between the franchisee (and their owners, employees, etc.) and other parties.
These agreements are put in place to protect Bumble Roofing's confidential information and trade secrets. After the franchise agreement expires or is terminated, the franchisee, their owners, guarantors, designated business managers, and employees with access to confidential information must maintain confidentiality for a period of 2 years, or indefinitely if the information constitutes a trade secret. They must not use the information for their own benefit or make unauthorized copies.
To ensure compliance, Bumble Roofing can require franchisees to implement procedures to prevent unauthorized use or disclosure of confidential information. This includes requiring written non-disclosure and non-competition agreements for relevant individuals and providing Bumble Roofing with copies of these agreements upon request. This provision aims to give Bumble Roofing a direct legal avenue to protect its proprietary information and system, which is a common practice in franchising to maintain brand consistency and competitive advantage.