What must a Bumble Roofing franchisee disclose to Bumble Roofing regarding the development and operation of the Roofing Business?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
opriate, in our sole discretion.
You must disclose to us all ideas, techniques and products concerning the development and operation of the Roofing Business you or your employees conceive or develop during the term of the Franchise Agreement. You must grant to us and agree to obtain from your owners or employees a perpetual, non-exclusive and worldwide right to use these ideas, techniques and products concerning the development and operation of Roofing Business that you or your employees conceive or develop during the term of the Franchise Agreement in all related product and service businesses that you operate. We will have no obligation to make any lump sum or on-going payments to you with respect to any idea, concept, method, technique or product. You must agree that you will not use, nor will you allow any other person or entity to use any of these ideas, techniques or products without obtaining our prior written approval.
ITEM 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
You must directly supervise the Roofing Business at your franchised location. The direct, on-site supervision must be done by a Designated Business Manager, which could be one of your employees. The Designated Business Manager is not required to own a beneficial interest in the business entity. In addition to the Designated Business Manager, you must have at least one designated individual who conducts sales or performs back office administrative services on a full-time basis.
If we believe you lack sufficient business experience, you must designate a Designated Business Manager to act as the operating manager for your Roofing Business.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 40–42)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, franchisees are obligated to disclose to Bumble Roofing any ideas, techniques, and products they or their employees develop concerning the Roofing Business's operation during the term of the Franchise Agreement. This includes granting Bumble Roofing a perpetual, non-exclusive, and worldwide right to use these innovations in all related product and service businesses.
This agreement means that any improvements or innovations a franchisee comes up with during their time operating a Bumble Roofing franchise essentially become the property of Bumble Roofing to use as they see fit. The franchisee will not receive any lump sum or ongoing payments for these ideas, concepts, methods, techniques, or products. Furthermore, the franchisee is prohibited from using or allowing others to use these innovations without prior written approval from Bumble Roofing.
This clause is fairly common in franchise agreements, as franchisors want to maintain control over their brand and system. However, it's crucial for prospective Bumble Roofing franchisees to understand that any successful innovations they develop for their business could be adopted by the entire franchise system without any direct financial benefit to them. Franchisees should carefully consider this aspect and its potential impact on their business and incentives to innovate.
In addition to disclosing and assigning rights to innovations, Bumble Roofing also has the right to inspect, copy, and use all records related to the franchisee's customers, suppliers, and service providers. This includes databases with names, addresses, phone numbers, email addresses, and customer purchase records. Bumble Roofing can use or transfer these records as they wish, even after termination of the franchise agreement, and can contact these parties for quality control, market research, or other purposes.