Are Bumble Roofing franchisees required to have employees sign non-disclosure and non-competition agreements?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
(e) Notwithstanding any other provision of this Agreement, there may be certain, limited circumstances where applicable law allows for the disclosure of certain Trade Secrets, as specified in the Manual.
14.2 Restrictive Covenants. Franchisee covenants and agrees that:
(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 Franchisor or Affiliate owned Roofing Business.
14.3 If any person restricted by this Section 14 refuses to voluntarily comply with the foregoing obligations, the 2-year period will commence upon the entry of any order of a court or arbitrator enforcing this Section 14.
14.4 The parties have attempted in Section 14.2 to limit Franchisee's right to compete only to the extent necessary to protect Franchisor from unfair competition.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
Based on the 2025 Bumble Roofing Franchise Disclosure Document, the document does not explicitly state that Bumble Roofing franchisees are required to have their employees sign non-disclosure and non-competition agreements. However, the agreement does state that the franchisee, its owners, guarantors, and designated business managers are subject to certain restrictive covenants.
Specifically, during the initial term of the agreement, these parties are prohibited from engaging in or being interested in any business operating in competition with a roofing business or any business as carried on during the initial term of the agreement without prior written consent from Bumble Roofing. Upon termination or expiration of the agreement, these parties are restricted from having any direct or indirect interest in any competing business within the territory, any other franchisee's territory, or within 10 miles of any Bumble Roofing or affiliate-owned roofing business for two years.
While the FDD outlines non-compete obligations for the franchisee and related parties, it remains unclear whether similar agreements are mandated for the franchisee's employees. A prospective franchisee should seek clarification from Bumble Roofing regarding the necessity of non-disclosure and non-competition agreements for employees to fully understand their obligations and protect the franchisor's interests.