Is the guarantor's liability under the Bumble Roofing franchise agreement joint, several, or both?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee, and its shareholders and partners, as applicable, jointly and severally acknowledge that they have carefully read this Agreement and all other related documents to be executed concurrently or in conjunction with the execution hereof, that they have obtained the advice of counsel in connection with entering into this Agreement, that they understand the nature of this Agreement, and that they intend to comply herewith and be bound hereby.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the first date set forth above.
BUMBLE ROOFING FRANCHISOR, LLC an Individual an Individual
ATTACHMENT C TO FRANCHISE AGREEMENT
STATEMENT OF OWNERSHIP
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 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Bumble Roofing Franchise Disclosure Document, the franchisee, along with its shareholders and partners, if applicable, jointly and severally acknowledge that they have carefully read the agreement and all related documents. This acknowledgement signifies that each party is individually responsible for fulfilling the obligations outlined in the franchise agreement. This means Bumble Roofing can pursue any one or all of the franchisees, shareholders, or partners for the full amount of any debt or obligation.
Additionally, Outdoor Living Brands HoldCo LLC, as the guarantor, absolutely and unconditionally guarantees 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 the Franchisor are satisfied or the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged. The guarantor remains liable even if a claim by a franchisee against the Franchisor remains outstanding.
In practical terms, this joint and several liability and the guarantee of performance provide Bumble Roofing with a strong level of protection. If the franchisee defaults, Bumble Roofing can seek recourse from any or all of the liable parties, including the guarantor, to ensure the fulfillment of the agreement's terms. This arrangement reduces the risk for Bumble Roofing and ensures that there are multiple avenues for recovering any losses or damages incurred due to a franchisee's non-compliance or default.