Does the Bumble Roofing franchisee have the authority to create any obligations on behalf of the franchisor?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
It is expressly agreed that the parties intend by this Agreement to establish between Franchisor and Franchisee the relationship of franchisor and franchisee.
It is further agreed that Franchisee has no authority to create or assume in Franchisor's name or on behalf of Franchisor, any obligation, express or implied, or to act or purport to act as agent or representative on behalf of Franchisor for any purpose whatsoever.
Franchisee agrees that it will not hold itself out as the agent, employee, partner or co-venturer of Franchisor.
All employees hired by or working for Franchisee shall be the employees of Franchisee and shall not, for any purpose, be deemed employees of Franchisor or subject to Franchisor's supervision or control.
If Franchisor incurs any cost, loss, or damage as a result of any actions or Franchisee's omissions of or the omissions of Franchisee's employees, including any that relate to any party making a finding of any joint employer status, then in addition to all other rights and remedies available to Franchisor, Franchisee will fully indemnify Franchisor for such loss.
Each of the parties agrees to file its own tax, regulatory and payroll reports with respect to its respective employees and operations, saving and indemnifying the other party hereto of and from any liability of any nature whatsoever by virtue thereof.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the franchise agreement explicitly states that franchisees do not have the authority to create any obligations on behalf of the franchisor. The agreement establishes a franchisor-franchisee relationship, clarifying that the franchisee cannot act as an agent or representative of Bumble Roofing for any purpose. This means a franchisee cannot make agreements or representations that would bind the franchisor.
This lack of authority extends to how the franchisee presents themselves. Franchisees must not present themselves as agents, employees, partners, or co-venturers of Bumble Roofing. All employees hired by the franchisee are solely the franchisee's responsibility and are not considered employees of the franchisor. This distinction is crucial for legal and operational reasons, ensuring that the franchisee operates as an independent entity.
The franchise agreement also includes an indemnification clause to protect Bumble Roofing from any costs, losses, or damages resulting from the franchisee's actions or omissions, or those of their employees. This includes any findings of joint employer status. Each party is responsible for filing their own tax, regulatory, and payroll reports, further emphasizing the independent nature of the franchise operation. This protects Bumble Roofing from liabilities arising from the franchisee's business operations and employment practices.