What is the geographic scope of the non-compete agreement for a Bumble Roofing franchisee after the termination or expiration of the franchise agreement, in relation to other franchisees?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.1 During the Initial Term and any Interim Period and for so long as Franchisee is in compliance with all of its obligations hereunder, except as otherwise provided in this Agreement, including Franchisor's reservation of rights as set forth in Sections 4.2, 4.4 and 4.7, neither Franchisor nor any Affiliate will establish or license another person or entity to establish a Roofing Business using the Marks licensed to Franchisee within the Territory encompassed by the boundaries and with the population base set forth in Attachment A, attached hereto and incorporated herein by reference. Except as otherwise specifically provided in this Agreement, this Agreement does not restrict Franchisor or its Affiliates and does not grant rights to Franchisee to pursue any of Franchisor's or its Affiliates other business concepts other than the Roofing Business.
- 4.2 Franchisee acknowledges that Franchise granted hereunder is non-exclusive and that Franchisor and its Affiliates retain the exclusive right, among others:
- (a) to use, and to license others to use, the Marks and System for the operation of Roofing Businesses at any location other than in the Territory, regardless of proximity to the Territory;
- (b) to use, license or franchise the use of trademarks or service marks other than the Marks, whether in alternative channels of distribution or at any location including the Territory, in association with operations that are the same as, similar to or different than Roofing Business;
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
Based on the 2025 Bumble Roofing Franchise Disclosure Document, the franchise agreement does not explicitly describe the geographic scope of a non-compete agreement in relation to other franchisees after termination or expiration. However, it does state that during the Initial Term and any Interim Period, Bumble Roofing will not establish or license another person or entity to establish a Roofing Business using the Marks licensed to the franchisee within the Territory encompassed by the boundaries outlined in Attachment A, as long as the franchisee complies with all obligations.
However, the agreement also specifies that the franchise granted is non-exclusive. Bumble Roofing retains the right to use, and license others to use, the Marks and System for Roofing Businesses at any location outside the franchisee's Territory, regardless of proximity. They can also use or franchise other trademarks or service marks, even within the Territory, for operations that may be the same, similar, or different than the Roofing Business.
To fully understand the restrictions that would apply post-termination or expiration, a prospective Bumble Roofing franchisee should ask the franchisor for clarification on the specific terms of the non-compete agreement, including its geographic scope and how it would affect their ability to operate a similar business after leaving the Bumble Roofing system. It would also be prudent to understand how these terms might differ in a Successor Franchise Agreement.