What is the Bumble Roofing franchisee's obligation regarding the operation of the business during the Interim Period?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.4 If Franchisee does not sign a Successor Franchise Agreement prior to the expiration of this Agreement and continues to accept the benefits of this Agreement after the expiration of this Agreement, then at the option of Franchisor, this Agreement may be treated either as (i) expired as of the date of expiration with Franchisee then operating without a license or franchise to do so and in violation of Franchisor's rights; or (ii) continued on a month-to-month basis ("Interim Period") until one party provides the other with written notice of such party's intent to terminate the Interim Period, in which case the Interim Period will terminate 30 days after receipt of the notice to terminate the Interim Period. In the latter case, all obligations of Franchisee shall remain in full force and effect during the Interim Period as if this Agreement had not expired, and all obligations and restrictions imposed on Franchisee upon expiration of this Agreement shall be deemed to take effect upon termination of the Interim Period.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the franchisee's obligations remain in full force and effect during the Interim Period, as if the Franchise Agreement had not expired. The Interim Period occurs if the franchisee does not sign a Successor Franchise Agreement before the expiration of the original agreement but continues to operate and accept benefits from the franchise.
During this Interim Period, all the duties, responsibilities, and restrictions that were in place under the original agreement continue to apply. This means the franchisee must continue to adhere to Bumble Roofing's operational standards, payment schedules, and other contractual obligations.
The Interim Period continues on a month-to-month basis until either the franchisee or Bumble Roofing provides written notice of intent to terminate, at which point the Interim Period ends 30 days after receipt of the termination notice. Upon termination of the Interim Period, all obligations and restrictions imposed on the franchisee upon the expiration of the original agreement take effect.