What happens if Bumble Roofing declines to exercise its right to purchase the franchisee's business?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
PTION TO PURCHASE RIGHT OF FIRST REFUSAL**
- 16.1 Unless otherwise explicitly provided by this Agreement, Franchisor shall be entitled to exercise the rights provided in this Section immediately upon:
- (a) The expiration without the extension of Franchisee's rights to operate the Roofing Business or the termination for any reason of the License or this Agreement; or
- (b) The receipt by Franchisor of a copy of a Purchase Offer.
- (a) The expiration without the extension of Franchisee's rights to operate the Roofing Business or the termination for any reason of the License or this Agreement; or
- 16.2 Upon any event described in this Section 16.2, Franchisor shall have the option to purchase all of Franchisee's rights, title and interest in the Business, and all its improvements, furniture, fixtures, equipment and products, and all of Franchisee's accounts, contract rights, customer and vendor lists, work in progress and other business assets.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, Bumble Roofing has the option to purchase a franchisee's business under certain conditions, such as the expiration or termination of the franchise agreement or the receipt of a purchase offer by the franchisee. Bumble Roofing must notify the franchisee of its intention to exercise or not exercise its right to purchase the business within 60 days following the expiration or termination of the agreement, or within 15 days following the receipt of a purchase offer. This notification is termed the "Notice of Intent."
However, the excerpt from the 2025 FDD does not explicitly state what happens if Bumble Roofing declines to exercise its right to purchase the franchisee's business. The document only outlines the conditions under which Bumble Roofing has the option to purchase the business and the timeframe for notifying the franchisee of their decision.
A prospective Bumble Roofing franchisee should seek clarification from Bumble Roofing regarding the specific procedures and outcomes should Bumble Roofing choose not to purchase the business. This would include understanding the franchisee's rights and responsibilities in selling the business to a third party, continuing operations, or winding down the business. It is important to understand all potential outcomes in such a scenario.