What is the duration of the guaranty provided to Bumble Roofing Franchisor, LLC, by the guarantor?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, Outdoor Living Brands HoldCo LLC, a Delaware limited liability company (the "Guarantor"), located at 2426 Old Brick Road, Glen Allen, Virginia 23060, absolutely and unconditionally guarantees to assume the duties and obligations of Bumble Roofing Franchisor, LLC located at 2426 Old Brick Road, Glen Allen, Virginia 23060 (the "Franchisor"), under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This guarantee continues until all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the guarantee of performance provided by Outdoor Living Brands HoldCo LLC continues until all obligations of Bumble Roofing Franchisor, LLC, under its franchise registrations and the Franchise Agreement are satisfied. Alternatively, the guarantee remains in effect until the liability of Bumble Roofing to its franchisees under the Franchise Agreement has been completely discharged, whichever occurs first.
This means that Outdoor Living Brands HoldCo LLC is committed to ensuring Bumble Roofing fulfills its duties to franchisees. This commitment lasts for the entire duration that Bumble Roofing has obligations, providing a level of security for franchisees.
The guarantee remains in place even if a franchisee's claim against Bumble Roofing is still outstanding, meaning the guarantor's obligations are not automatically discharged if there's an unresolved issue. The guarantor has also waived the right to receive notice of acceptance of the guarantee, but does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
This type of guarantee is relatively common in franchising, especially when the franchisor is a newer entity or part of a larger organization. It assures franchisees that there is a financially stable entity backing the franchise system. Prospective Bumble Roofing franchisees should understand the implications of this guarantee and how it protects their investment.