Does Bumble Roofing guarantee a franchisee's loans?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT I
BUMBLE ROOFING FRANCHISOR, LLC GUARANTEE OF PERFORMANCE
GUARANTEE OF PERFORMANCE
For value received, Outdoor Living Brands HoldCo LLC, a Delaware limited liability company (the "Guarantor"), located at 2426 Old Brick Road, Glen Allen, Virginia 23060, absolutely and unconditionally guarantees to assume the duties and obligations of Bumble Roofing Franchisor, LLC located at 2426 Old Brick Road, Glen Allen, Virginia 23060 (the "Franchisor"), under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This guarantee continues until all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
Source: Item 10 — FINANCING (FDD page 30)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Bumble Roofing does not guarantee a franchisee's loans. However, Exhibit I outlines a "Guarantee of Performance" provided by Outdoor Living Brands HoldCo LLC, the Guarantor, to assume the duties and obligations of Bumble Roofing Franchisor, LLC under its franchise registration and Franchise Agreement. This guarantee remains in effect until all obligations of Bumble Roofing Franchisor, LLC are satisfied or the liability to its franchisees is completely discharged.
This "Guarantee of Performance" ensures that Outdoor Living Brands HoldCo LLC will step in to fulfill Bumble Roofing's obligations under the Franchise Agreement. This protects franchisees by ensuring the franchisor's duties are upheld, even if Bumble Roofing Franchisor, LLC faces difficulties. However, it is important to note that this guarantee specifically addresses the franchisor's performance and obligations under the franchise agreement, not the franchisee's financial obligations such as loans.
Prospective franchisees should carefully review Exhibit I of the FDD to fully understand the scope and limitations of the "Guarantee of Performance" provided by Outdoor Living Brands HoldCo LLC. It is also advisable to seek legal counsel to interpret the implications of this guarantee and how it affects their rights and responsibilities as a Bumble Roofing franchisee. Understanding the distinction between the franchisor's performance guarantee and any potential loan guarantees is crucial for making an informed investment decision.