Does the Bumble Roofing franchisor have any liability for the franchisee's failure to pay employees?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- (v) Franchisee must secure and maintain in force all required licenses, permits and certificates relating to the operation of the Business and must operate the Business in full compliance with all applicable laws, ordinances and regulations including consumer protection laws, and labor and employment laws.
Franchisee must comply with all laws and regulations relating to privacy and data protection, and must comply with any privacy policies or data protection and breach response policies Franchisor periodically may establish.
Franchisee must notify Franchisor in writing within five (5) days of the commencement of any action, suit, proceeding or investigation, and of the issuance of any order, injunction, award of decree, by any court, agency, or other governmental instrumentality that may adversely affect the operation or financial condition of Franchisee or the Business.
Franchisee must notify Franchisor immediately of any suspected data breach at or in connection with the Business.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Bumble Roofing Franchise Disclosure Document, the franchisee is responsible for operating the business in compliance with all applicable laws, including labor and employment laws. Specifically, the franchisee must secure and maintain all required licenses, permits, and certificates related to the business's operation. This includes adhering to consumer protection laws, as well as labor and employment laws.
Bumble Roofing franchisees are also obligated to comply with all laws and regulations relating to privacy and data protection, including any privacy policies or data protection and breach response policies that Bumble Roofing may periodically establish. Furthermore, the franchisee is required to notify Bumble Roofing in writing within five days of any action, suit, proceeding, or investigation, or of the issuance of any order, injunction, award, or decree by any court, agency, or other governmental instrumentality that may adversely affect the operation or financial condition of the franchisee or the business. The franchisee must also immediately notify Bumble Roofing of any suspected data breach at or in connection with the business.
These stipulations indicate that Bumble Roofing places the onus on the franchisee to ensure compliance with legal and regulatory requirements related to their employees. Therefore, the franchisee is primarily liable for any failure to pay employees or any other violation of labor and employment laws. Bumble Roofing's requirements for franchisees to maintain compliance and report any legal issues suggest that they are not directly liable for the franchisee's failure to pay employees, as the responsibility for adherence to these laws rests with the franchisee.