Is a Bumble Roofing franchisee allowed to advise a competing business during the initial term of the agreement?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
14.2 Restrictive Covenants. Franchisee covenants and agrees that:
(a) During the Initial Term of this Agreement and any Interim Period thereof, Franchisee, its owners, guarantors and Designated Business Managers shall not, without the prior written consent of Franchisor, either individually or in a partnership, corporation, limited liability company, joint venture or other business entity or jointly or in conjunction with any person, firm, association, syndicate or corporation, as principal, agent, shareholder, member, partner, employee or in any manner whatsoever, carry on or be engaged in or be concerned with or interested in or advise, lend money to, guarantee the debts or obligations of or permit its name or any part thereof to be used or employed in any business operating in competition with a roofing business or any Business as carried on during the Initial Term of this Agreement, including any Interim Period thereof.
(b) Upon termination or expiration of the Initial Term or any Interim Period, regardless of the cause, or the transfer, sale or assignment of this Agreement by Franchisee, neither Franchisee, any guarantors, the Designated Business Manager nor Franchisee's owners will have any direct or indirect interest (i.e., through a relative) as a disclosed or beneficial owner, investor, partner, director, officer, employee, consultant, representative or agent, for two (2) years; in any Business: (1) in the Territory or any other franchisee's territory; (2) within 10 miles of the Territory or any other franchisee's territory; or (3) within 10 miles of any Franchisor or Affiliate owned Roofing Business.
14.3 If any person restricted by this Section 14 refuses to voluntarily comply with the foregoing obligations, the 2-year period will commence upon the entry of any order of a court or arbitrator enforcing this Section 14.
14.4 The parties have attempted in Section 14.2 to limit Franchisee's right to compete only to the extent necessary to protect Franchisor from unfair competition.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, during the initial term of the agreement, a franchisee is restricted from advising a competing business. Specifically, the franchisee, its owners, guarantors, and designated business managers are prohibited from engaging in, being concerned with, or advising any business operating in competition with Bumble Roofing. This restriction applies whether they act individually or through any business entity, and in any capacity such as principal, agent, shareholder, member, partner, or employee.
This restriction is in place to protect Bumble Roofing from unfair competition during the term of the franchise agreement. The FDD states that the parties have attempted to limit the franchisee's right to compete only to the extent necessary to protect Bumble Roofing.
After the initial term, or if the agreement is terminated, there are further restrictions for two years regarding involvement in competing businesses within the territory, other franchisees' territories, or near any Bumble Roofing owned business. These post-term restrictions extend to any direct or indirect interest, including through relatives, as an owner, investor, partner, director, officer, employee, consultant, representative, or agent.