What is the Bumble Roofing franchisee's obligation regarding the operation of the business during any 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 the 2025 Bumble Roofing Franchise Disclosure Document, if a franchisee continues to operate after the expiration of the initial agreement without signing a Successor Franchise Agreement, Bumble Roofing has the option to treat the agreement as expired or to continue it on a month-to-month basis, which is referred to as the "Interim Period."
During this Interim Period, all obligations of the franchisee remain in full force and effect, as if the original agreement had not expired. This means the franchisee must continue to adhere to all the terms and conditions of the original franchise agreement, including operational standards, payment obligations, and any other requirements outlined in the agreement.
Upon termination of the Interim Period, all obligations and restrictions imposed on the franchisee upon the expiration of the agreement will take effect. This implies that the franchisee must then comply with any post-term obligations, such as non-compete clauses or confidentiality agreements, that are triggered by the termination of the franchise agreement.