Can a Bumble Roofing franchisee transfer their rights to an alternate territory without approval?
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;
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Bumble Roofing Franchise Disclosure Document, a franchisee cannot transfer their rights to an alternate territory without prior written consent from Bumble Roofing. Specifically, a franchisee cannot "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". This restriction applies to shares or interests in the capital of a corporation, limited liability company, partnership, or other business entity related to the franchise.
This requirement means that if a Bumble Roofing franchisee wishes to change the ownership or control of their franchise business, they must first obtain approval from Bumble Roofing. This provision allows Bumble Roofing to maintain control over who operates franchises under their brand and ensures that any new owners meet their standards.
For a prospective Bumble Roofing franchisee, this underscores the importance of carefully considering the long-term implications of the franchise agreement. It may limit the franchisee's flexibility to exit the business or change its ownership structure without franchisor involvement. The franchisee should discuss potential exit strategies and transfer scenarios with Bumble Roofing during their due diligence to fully understand the franchisor's requirements and approval process.