What must Bumble Roofing franchisees do to ensure their sublicenses continue if the trademark agreement is terminated?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
Lynx IP has granted us the perpetual right to use and sublicense others to use the principal Marks, as well as other Marks under a trademark license agreement with an effective date of August 4, 2023. Lynx IP may terminate the trademark agreement if any misuse of these Marks materially impairs the goodwill associated with these Marks, if we violate any provision of the license agreement or we do not comply with Lynx IP's instruction concerning the quality of these Marks. If the trademark agreement is terminated, any then-existing sublicenses (franchises) will continue for the term of the sublicenses, provided that the sublicensees (franchisees) comply with all other terms of their franchise agreements. The trademark license agreement contains no other limitations.
Source: Item 13 — TRADEMARKS (FDD pages 39–40)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, if the trademark agreement between Bumble Roofing and Lynx IP is terminated, Bumble Roofing franchisees' sublicenses will continue for the term of their agreements, provided that the franchisees comply with all other terms of their franchise agreements. This continuation is contingent upon the franchisee adhering to all the stipulations outlined in their franchise agreement with Bumble Roofing.
This condition is significant for prospective franchisees. It means that even if the overarching trademark agreement faces termination, a franchisee's right to operate under the Bumble Roofing brand can persist. However, this continuation is not guaranteed; it depends entirely on the franchisee's adherence to the terms of their individual franchise agreement. Any breach of contract on the franchisee's part could jeopardize their sublicense, regardless of the status of the master trademark agreement.
For a prospective Bumble Roofing franchisee, this underscores the importance of thoroughly understanding and diligently following the franchise agreement. While the termination of the trademark agreement is an external factor, the franchisee's own compliance is the key determinant in maintaining their right to operate. This clause provides a degree of security but also places the onus of responsibility squarely on the franchisee to uphold their contractual obligations.