factual

Does the Bumble Roofing franchise agreement contain a covenant not to compete that extends beyond the termination of the franchise?

Bumble_Roofing Franchise · 2025 FDD

Answer from 2025 FDD Document

within one hundred twenty days |

Provision Section in Franchise Agreement or Other Agreement Summary
q. Non-competition covenants during the term of the franchise Section 14 of Franchise Agreement No involvement in Competitive Business. A "Competitive Business" is any business offering and selling roofing installation, maintenance, and repairs, and related products and services, for residential and commercial customers.
r.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–45)

What This Means (2025 FDD)

According to Bumble Roofing's 2025 Franchise Disclosure Document, the franchise agreement does include non-competition covenants that extend beyond the termination or expiration of the franchise. Specifically, for a period of two years after the franchise terminates or expires, a franchisee is restricted from engaging in a Competitive Business.

A "Competitive Business" is defined as any business involved in offering and selling roofing installation, maintenance, and repairs, along with related products and services, to both residential and commercial customers. This post-term non-compete restriction applies (i) within the Territory or any other Franchisee's Territory; (ii) 10 miles of the Territory or any other Franchisee's Territory or (iii) 10 miles of any of our or our affiliate owned Roofing Business.

This means that after leaving the Bumble Roofing system, a former franchisee cannot immediately start or join a competing roofing business within the specified geographic areas. This restriction is designed to protect Bumble Roofing's market share and the interests of its other franchisees. Prospective franchisees should carefully consider the implications of this non-compete clause, especially if they plan to remain in the roofing industry after their franchise agreement ends. They should also be aware that the enforceability of non-compete agreements can vary by state law.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.