Can the Bumble Roofing franchisor modify the franchisee's territory at the time of renewal?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.2 Franchisor reserves the right, but not the obligation, in Franchisor's sole discretion, to modify Franchisee's Territory at the time Franchisee executes a Successor Franchise Agreement to conform the size of Franchisee's Territory to Franchisor's then-current standards for protected territorial areas that are being granted to new BUMBLE ROOFING® franchisees, for example, if there has been an increase or decrease in the population or number of qualified households within Franchisee's original Territory, or if Franchisor uses different standards or calculations in determining the size of protected territories that are granted to new BUMBLE ROOFING® franchisees.
If at the time Franchisee intends to execute a Successor
Franchise Agreement the size of Franchisee's original Territory encompasses more than one protected territory based upon Franchisor's then-current standards for determining protected territories for new BUMBLE ROOFING® franchisees, then Franchisor we may require Franchisee to execute multiple Successor Franchise Agreements if Franchisee wishes to continue operating within the entire original Territory.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, Bumble Roofing reserves the right to modify a franchisee's territory when the franchisee executes a Successor Franchise Agreement. This modification is at Bumble Roofing's discretion and aims to align the territory size with the company's current standards for protected areas granted to new franchisees.
This adjustment may occur due to changes in population or the number of qualified households within the original territory. Bumble Roofing might also implement different standards or calculations for determining the size of protected territories for new franchisees. This means that the territory a franchisee had during their initial term could be altered upon renewal to reflect current market conditions and Bumble Roofing's evolving territorial strategy.
Furthermore, if the franchisee's original territory encompasses more than one protected territory under Bumble Roofing's current standards, Bumble Roofing may require the franchisee to execute multiple Successor Franchise Agreements to continue operating within the entire original territory. This could potentially lead to a franchisee needing to manage multiple agreements to maintain their original service area, impacting administrative overhead and potentially increasing fees.
For a prospective Bumble Roofing franchisee, this policy introduces an element of uncertainty regarding the stability of their territory. While the initial agreement defines the territory, its boundaries can be redefined at the time of renewal based on factors outside the franchisee's control. It is important for potential franchisees to understand Bumble Roofing's criteria for territory adjustments and to discuss potential scenarios with existing franchisees to gauge the practical implications of this clause.