What does the guarantor of a Bumble Roofing franchise guarantee to Bumble Roofing FRANCHISOR, LLC?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
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 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Bumble Roofing Franchise Disclosure Document, Outdoor Living Brands HoldCo LLC guarantees the duties and obligations of Bumble Roofing Franchisor, LLC under its franchise registration in each state where the franchise is registered and under its Franchise Agreement. This guarantee remains in effect until all obligations of Bumble Roofing Franchisor, LLC under its franchise registrations and the Franchise Agreement are satisfied, or until the liability of Bumble Roofing Franchisor, LLC to its franchisees under the Franchise Agreement has been completely discharged.
The guarantor is not discharged from liability if a claim by a franchisee against Bumble Roofing Franchisor, LLC remains outstanding. Notice of acceptance is waived, but the guarantor does not waive receipt of notice of default on the part of Bumble Roofing Franchisor, LLC. The guarantee is binding on the guarantor and its successors and assigns.
In simpler terms, Outdoor Living Brands HoldCo LLC is promising that Bumble Roofing Franchisor, LLC will fulfill its promises and duties to franchisees. If Bumble Roofing Franchisor, LLC fails to meet these obligations, Outdoor Living Brands HoldCo LLC will step in to ensure they are fulfilled. This provides an additional layer of security for franchisees, knowing that a larger entity is backing the franchisor's commitments.
This type of guarantee is not uncommon in franchising, especially when the franchisor is a newer or smaller entity. It assures franchisees that the franchisor has the financial backing and commitment of a more established company. Prospective franchisees should carefully consider the implications of this guarantee and understand the financial stability and reputation of the guarantor, Outdoor Living Brands HoldCo LLC.