Who is designated as a third-party beneficiary on the non-disclosure and non-competition agreements for 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 Bumble Roofing's 2025 Franchise Disclosure Document, the franchisor will be designated as a third-party beneficiary on the non-disclosure and non-competition agreements. This means that Bumble Roofing Franchisor, LLC, has the right to enforce the terms of these agreements, even though they are made between the franchisee (or their owners, guarantors, Designated Business Managers, and employees) and another party.
This is a common practice in franchising to protect the franchisor's confidential information and trade secrets. By being a third-party beneficiary, Bumble Roofing can directly take legal action if a franchisee or their personnel breaches the non-disclosure or non-competition terms, ensuring the franchisor's interests are safeguarded.
The non-disclosure and non-competition agreements apply both during the term of the Franchise Agreement and for a period of 2 years after the termination or expiration of the agreement. If the information is a trade secret, the restrictions remain in place as long as the information constitutes a trade secret. This ensures that confidential information and trade secrets are protected even after the franchise relationship ends.