Is the guarantor's liability for a Bumble Roofing franchise direct and immediate?
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, the Guarantor, absolutely and unconditionally guarantees to assume 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 are satisfied or the liability of the Franchisor to its franchisees under the Franchise Agreement has been completely discharged.
The guarantor's obligations are comprehensive, covering all duties and obligations of Bumble Roofing under the franchise registration and Franchise Agreement. This provides a level of security for franchisees, as the Guarantor is bound to ensure Bumble Roofing fulfills its commitments. The guarantee remains in effect until all obligations are met or the liability of Bumble Roofing to its franchisees is completely discharged, offering long-term protection.
However, the Guarantor does not waive receipt of notice of default on the part of the Franchisor. This means that the Guarantor is entitled to be informed of any defaults by Bumble Roofing before being held liable. The guarantee is binding on the Guarantor and its successors and assigns, ensuring continuity of the guarantee even if the Guarantor's ownership or structure changes. A franchisee should seek legal counsel to fully understand the implications and potential limitations of this guarantee.