What happens if a Bumble Roofing franchisee intentionally discloses confidential information?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
roofing installation, maintenance, and repairs, and related products and services, for residential and commercial customers.
- (d) "Confidential Information" means all knowledge, know-how, standards, formulas, methods and procedures related to the establishment and operation of the Business and use of the System, and includes all records pertaining to customers, suppliers, and other service providers of, and/or related in any way to, the Business including, without limitation, all databases (whether in print, electronic or other form), all names, addresses, phone numbers, e-mail addresses, customer purchase records, mail lists, manuals, promotional and marketing materials, marketing strategies and any other data and information which Franchisor or its Affiliates designates as confidential, including without limitation all information contained in Franchisor's Manual, which may be provided as one or more separate manuals, written instructional guides, CD Rom, electronic formats, via the Franchisor's intranet system, or other communications from Franchisor or its affiliates, which Franchisor has the right to periodically change or supplement.
- (e) "Franchise" shall mean the business operations conducted or to be conducted using Franchisor's System and in association with the Marks.
- (f) "Gross Revenues" means the total of all receipts derived from all sales of products and services in connection with Franchisee's Roofing Business, including, without limitation, labor, insurance claims for lost profits to the extent a claim is paid by the insurer, and all other products and services sold or performed by or for Franchisee or Franchisee's Roofing Business or by means of the business conducted under this Agreement, whether the receipts are evidenced by cash, credit, checks, gift certificates, scrip, coupons, services, property or other means of exchange. Gross Revenues do not include:
- (i) the amount of any tax imposed by any federal, state, municipal or other governmental authority directly on sales and collected from customers, provided that the amount of any such tax is shown separately and in fact paid by Franchisee to the appropriate governmental authority;
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Bumble Roofing emphasizes the importance of protecting confidential information and trade secrets related to its business system. The Franchise Agreement defines 'Confidential Information' broadly, encompassing knowledge, know-how, standards, formulas, methods, procedures, customer records, supplier information, databases, marketing materials, and any data designated as confidential by Bumble Roofing. This includes information contained in the Bumble Roofing manual, which can be updated periodically. Franchisees acknowledge that this information is confidential and agree to protect it.
While the FDD excerpts provided do not explicitly detail the specific penalties or legal actions Bumble Roofing might take if a franchisee intentionally discloses confidential information, the agreement underscores the franchisee's responsibility to safeguard this information. The agreement also states that a default under one Bumble Roofing franchise agreement constitutes a default under any other Bumble Roofing franchise agreement the franchisee may have, and vice versa. This implies that a breach of confidentiality could lead to the termination of all franchise agreements with Bumble Roofing.
Given the lack of explicit details on the consequences of disclosing confidential information, prospective Bumble Roofing franchisees should seek clarification from the franchisor regarding the specific repercussions of such actions. Understanding the potential legal and financial ramifications is crucial before entering into a franchise agreement. Franchisees should also inquire about the measures Bumble Roofing takes to protect its own confidential information and what support it provides to franchisees in maintaining confidentiality.