What happens if a Bumble Roofing franchisee fails to obtain or maintain the required insurance?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) In the event Franchisee fails to obtain the required insurance and to keep the same in full force and effect, Franchisor may, but shall not be obligated to, purchase insurance on Franchisee's behalf from an insurance carrier of Franchisor's choice, and Franchisee must reimburse Franchisor for the cost of the insurance plus 10% plus interest for any amounts Franchisor pays on behalf of Franchisee due to Franchisee's failure to meet the insurance obligations.
This remedy is cumulative to all other remedies.
Notwithstanding the foregoing, failure of Franchisee to obtain insurance constitutes a material breach of this Agreement entitling Franchisor to terminate this Agreement or exercise any or a combination of the other default remedies set forth in Section 17 of this Agreement.
- (e) Franchisee's obligation to obtain and maintain insurance coverage in the amounts required by Franchisor shall not be limited in any way by reason of any insurance that Franchisor may maintain, nor does Franchisee's procurement of required insurance relieve Franchisee of liability under the indemnity obligations described in Section 12.2.
Franchisee's insurance procurement obligations under this Section are separate and independent of Franchisee's indemnity obligations.
- (f) Franchisor does not represent or warrant that any insurance that Franchisee is required to purchase will provide adequate coverage or protection for Franchisee.
The requirements of insurance specified in this Agreement or the Manual are strictly for Franchisor's protection.
Franchisee should consult with its own insurance agents, brokers, attorneys and other insurance professionals to determine the level of insurance protection it needs and desires, in addition to the coverage and limits required by Franchisor.
- (g) Franchisor reserves the right to modify minimum insurance requirements at any time in its sole discretion by updating the Manual.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, if a franchisee fails to obtain or maintain the required insurance, Bumble Roofing has the option, but not the obligation, to purchase insurance on the franchisee's behalf. If Bumble Roofing chooses to do so, the franchisee must reimburse Bumble Roofing for the cost of the insurance, plus an additional 10%, and interest on any amounts Bumble Roofing pays.
Importantly, the FDD states that the failure to obtain insurance constitutes a material breach of the Franchise Agreement. This gives Bumble Roofing the right to terminate the agreement or exercise any other default remedies outlined in Section 17 of the agreement.
The franchisee's obligation to maintain insurance is not limited by any insurance that Bumble Roofing may carry, nor does the franchisee's insurance relieve them of their indemnity obligations as described in Section 12.2 of the Franchise Agreement. The insurance requirements specified in the agreement or the manual are strictly for Bumble Roofing's protection, and Bumble Roofing does not guarantee that the required insurance will provide adequate coverage for the franchisee. Bumble Roofing also reserves the right to modify minimum insurance requirements at any time by updating the manual.