Is the Bumble Roofing Franchise Agreement transferable in the event of the franchisee's death?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) No shares or interest in the capital of such corporation, limited liability company, partnership or other business entity shall be issued nor shall Franchisee directly or indirectly, voluntarily or involuntarily, by operation of law or otherwise, sell, assign, transfer, convey, donate, pledge, mortgage or otherwise encumber any such shares or interest or offer or attempt to do so or permit the same to be done without Franchisor's prior written consent;
- (c) The corporation shall maintain stop transfer instructions against the transfer of shares on its records subject to the restrictions of this Section and shall have all outstanding shares endorsed with the following legend printed conspicuously upon the face of each certificate:
"The transfer of this certificate is subject to the terms and conditions of a certain Franchise Agreement with BUMBLE ROOFING FRANCHISOR, LLC Reference is made to said Franchise Agreement and to the restrictive provisions of the articles of this corporation."
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
The 2025 Bumble Roofing Franchise Disclosure Document does not explicitly address whether the franchise agreement is transferable in the event of the franchisee's death. However, it does discuss transferability in other contexts.
The FDD states that franchisees cannot sell, assign, transfer, convey, donate, pledge, mortgage, or otherwise encumber any shares or interest in the business without Bumble Roofing's prior written consent. This restriction applies to corporations, limited liability companies, partnerships, or other business entities. To ensure compliance, the company mandates stop transfer instructions against share transfers and requires a specific legend on stock certificates indicating the transfer is subject to the franchise agreement terms.
While the FDD outlines the general conditions for transferring ownership, it does not specifically address the scenario where the franchisee dies. A prospective Bumble Roofing franchisee should clarify with the franchisor the procedures and requirements for transferring the franchise in the event of death to ensure business continuity and proper estate planning.