What is the Bumble Roofing franchisee's obligation regarding conflicting agreements during the Initial Term or any Interim Period?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
(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 Franchis
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 Franchise Agreement or any Interim Period, franchisees, their owners, guarantors, and Designated Business Managers are restricted from engaging in any business that competes with Bumble Roofing. This restriction applies unless they obtain prior written consent from Bumble Roofing. This includes involvement as a principal, agent, shareholder, member, partner, employee, or in any other capacity with a competing roofing business.
This non-compete clause prevents franchisees from directly or indirectly participating in or supporting any competing business during their franchise term. The restriction extends to advising, lending money to, or guaranteeing the debts of a competing business. It also prohibits franchisees from allowing their name to be used by a competing business.
After the Initial Term or any Interim Period, or if the franchise is transferred, sold, or assigned, a different set of restrictions apply for two years. During this time, franchisees, guarantors, Designated Business Managers, and owners cannot have a direct or indirect interest in any competing business within the Territory, any other franchisee's territory, or within 10 miles of either. This post-term restriction is in place to protect Bumble Roofing's market and other franchisees from unfair competition from former franchisees who may have gained knowledge and experience while operating under the Bumble Roofing brand.