If the trademark agreement is terminated, will existing Bumble Roofing franchises continue?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
Lynx IP has granted us the perpetual right to use and sublicense others to use the principal Marks, as well as other Marks under a trademark license agreement with an effective date of August 4, 2023. Lynx IP may terminate the trademark agreement if any misuse of these Marks materially impairs the goodwill associated with these Marks, if we violate any provision of the license agreement or we do not comply with Lynx IP's instruction concerning the quality of these Marks. If the trademark agreement is terminated, any then-existing sublicenses (franchises) will continue for the term of the sublicenses, provided that the sublicensees (franchisees) comply with all other terms of their franchise agreements. The trademark license agreement contains no other limitations.
Source: Item 13 — TRADEMARKS (FDD pages 39–40)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the continuation of existing franchise agreements depends on the trademark license agreement between Bumble Roofing and its affiliate, Lynx IP. Lynx IP has granted Bumble Roofing the right to use and sublicense its trademarks under an agreement effective August 4, 2023.
The FDD states that Lynx IP can terminate the trademark agreement under specific conditions, such as misuse of the trademarks that significantly harms their associated goodwill, violations of the license agreement, or failure to comply with Lynx IP's instructions regarding the quality of the trademarks.
However, even if the trademark agreement between Lynx IP and Bumble Roofing is terminated, the FDD clarifies that any existing Bumble Roofing franchise agreements (referred to as sublicenses) will continue for the remainder of their term. This continuation is contingent upon the franchisees (sublicensees) adhering to all other terms and conditions outlined in their respective franchise agreements. This provision offers a degree of security for franchisees, ensuring their right to operate under the Bumble Roofing brand for the duration of their agreement, provided they remain in compliance.
This clause in the Bumble Roofing FDD is important for prospective franchisees to understand, as it outlines the conditions under which their franchise agreement would remain valid even if the overarching trademark agreement is terminated. Franchisees should carefully review their franchise agreement to fully understand their obligations and ensure compliance, thereby safeguarding their right to continue operating their Bumble Roofing franchise.