What document must individuals with a 5% or greater interest in a Bumble Roofing franchise sign?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
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, any individual who owns, directly or indirectly, a 5% or greater interest in the franchise entity must sign the Guaranty and Assumption of Franchisee's Obligations. This requirement also extends to the franchisee's immediate family, defined as their spouse and domestic partner, if the franchisee signs the Franchise Agreement as an individual.
The Guaranty and Assumption of Franchisee's Obligations legally binds these individuals to discharge all obligations and comply with all restrictions outlined in the Franchise Agreement. This means they are personally guaranteeing the franchisee's performance under the agreement.
This is a common practice in franchising, as it ensures that individuals with a significant financial stake in the franchise are also personally committed to upholding the terms of the agreement. It also provides Bumble Roofing with additional recourse in case of default or breach of contract by the franchisee. Attachment B to the Franchise Agreement contains the Guaranty and Assumption of Franchisee's Obligations.