Is the guaranty for a Bumble Roofing franchise continuing and irrevocable?
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 Bumble Roofing's 2025 Franchise Disclosure Document, Outdoor Living Brands HoldCo LLC guarantees the obligations of Bumble Roofing Franchisor, LLC under its franchise registration and Franchise Agreement. This guarantee is in place until all obligations of Bumble Roofing Franchisor, LLC are satisfied or the liability to its franchisees is completely discharged.
The guarantee remains in effect even if a franchisee has an outstanding claim against Bumble Roofing Franchisor, LLC. The guarantor, Outdoor Living Brands HoldCo LLC, does not receive notice of acceptance of the guarantee and is not exempt from liability if Bumble Roofing Franchisor, LLC defaults.
This guarantee is binding on Outdoor Living Brands HoldCo LLC and its successors and assigns. This arrangement provides franchisees with an additional layer of security, as Outdoor Living Brands HoldCo LLC is financially responsible for Bumble Roofing Franchisor, LLC's obligations. This type of guarantee is common in franchising, especially when the franchisor is a newly formed entity or has limited operating history.