After the Bumble Roofing franchise agreement expires or is terminated, for how long are franchisees restricted from using Confidential Information?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
- (d) Notwithstanding the foregoing, the restrictions on the disclosure and use of the Confidential Information will not apply to the following: (a) Confidential Information in the public domain after it was communicated to Franchisee through no fault of Franchisee, its owners, Designated Business Managers or employees; (b) Confidential Information in Franchisee's possession free of any obligation of confidence at the time it was communicated to Franchisee; or (c) the disclosure of the Confidential Information in judicial or administrative proceedings to the extent that Franchisee is legally compelled to disclose the information, if Franchisee has notified Franchisor before disclosure and used Franchisee's best efforts, and afforded Franchisor the opportunity, to obtain an appropriate protective order or other assurance satisfactory to Franchisor of confidential treatment for the information required to be so disclosed.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Bumble Roofing Franchise Disclosure Document, franchisees, their owners, guarantors, designated business managers, and employees with access to confidential information and trade secrets are restricted from using this information after the franchise agreement expires or is terminated. This restriction lasts for a period of 2 years, unless the information is classified as a trade secret. If the information is a trade secret, the restrictions remain in place as long as the information retains its status as a trade secret.
During this restricted period, these individuals must not use the confidential information or trade secrets in any other business or capacity, or for their own benefit. They are obligated to maintain the absolute confidentiality of this information and prevent any unauthorized copies from being made.
Furthermore, Bumble Roofing franchisees must implement procedures to prevent unauthorized use or disclosure of confidential information and trade secrets. This includes requiring written non-disclosure and non-competition agreements from individuals as required by Bumble Roofing, and providing signed copies of these agreements to Bumble Roofing upon request. However, these restrictions do not apply to information that becomes public through no fault of the franchisee, was already in the franchisee's possession without any confidentiality obligation, or is disclosed in legal proceedings where the franchisee is legally compelled to do so after providing notice to Bumble Roofing and making efforts to obtain a protective order.