What are the exceptions to the abandonment clause that would prevent Bumble Roofing from terminating the franchise agreement?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
3.1 This Agreement and the License granted shall continue for a period of seven years ("Initial Term"). This Initial Term shall begin on the date this Agreement is executed by Franchisor, subject, however, to termination in accordance with the provisions of this Agreement. When the Initial Term expires Franchisee shall have the option to extend its rights to operate the Roofing Business for one additional term equal to the length of Franchisor's then-current initial term as described in its then-current BUMBLE ROOFING® franchise agreement ("Successor Term"), provided Franchisor determines in its sole and absolute discretion that Franchisee has met all of the following requirements:
(a) Franchisee has not failed to remedy any breach of this Agreement specified by Franchisor in a written notice to Franchisee as per Sections 17.1 or 17.2;
(b) Franchisee has not committed and received notice of two or more breaches of this Agreement in the 12 months prior to the end of the current Initial Term, even if such breaches were timely remedied;
(c) Franchisee has given Franchisor a written notice of intent to extend its rights to operate the Roofing Business no less than two months or more than six months prior to expiration of the Initial Term;
(d) Franchisee is current in its payment obligations to Franchisor, Franchisor's Affiliates, and Franchisee's trade creditors;
(e) Franchisee has met Franchisor's then-current qualifications for new or renewing BUMBLE ROOFING® franchisees;
(f) Franchisee executes a successor franchise agreement ("Successor Franchise Agreement") and all other agreements in the form then being used by Franchisor in granting new franchises, which may contain materially different terms and conditions than this Agreement, provided that Franchisee will pay Franchisor the Successor Franchise Fee (defined below) instead of the Initial Franchise Fee and the Successor Term will be no less than five years, as described above.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
Based on the 2025 Bumble Roofing Franchise Disclosure Document, there are several conditions under which Bumble Roofing will not terminate the franchise agreement, specifically related to the franchisee's right to extend the agreement for a Successor Term. The franchise agreement has an initial term of seven years, but the franchisee has the option to extend the rights to operate the roofing business for an additional term if certain requirements are met.
Bumble Roofing will allow a franchisee to extend the agreement if the franchisee has not failed to remedy any breach specified by Bumble Roofing in a written notice, and has not committed and received notice of two or more breaches of the agreement in the 12 months prior to the end of the current initial term, even if such breaches were timely remedied. The franchisee must also provide written notice of intent to extend its rights to operate the Roofing Business no less than two months or more than six months prior to expiration of the Initial Term.
To avoid termination, the franchisee must be current in its payment obligations to Bumble Roofing, its affiliates, and the franchisee's trade creditors. Additionally, the franchisee must meet Bumble Roofing's then-current qualifications for new or renewing Bumble Roofing franchisees. Finally, the franchisee must execute a successor franchise agreement and all other agreements in the form then being used by Bumble Roofing in granting new franchises and pay Bumble Roofing the Successor Franchise Fee.