What information about the proposed transferee can Bumble Roofing reasonably require during a franchise transfer?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
iding jointly and severally such personal guarantees which Franchisor may request, guaranteeing the proposed transferee's performance of its obligations under the agreements to be entered into; and
- (i) the proposed transferee shall have demonstrated to Franchisor's satisfaction that it, he or she will meet in all respects Franchisor's standards applicable to new franchisees regarding experience, personal and financial reputation and stability, required financial wherewithal, willingness and ability to devote its, his or her full time and best efforts to the operation of the Business, and any other conditions as Franchisor may reasonably apply in evaluating new franchisees. Franchisor must be provided all information about the proposed transferee as Franchisor may reasonably require. Because of the confidential information and trade secrets available to a franchisee, no assignment to a competitor of Franchisor will be permitted;
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, a franchisee looking to transfer their franchise must provide Bumble Roofing with all information about the proposed transferee that Bumble Roofing may reasonably require. The proposed transferee must also demonstrate to Bumble Roofing's satisfaction that they meet the standards applicable to new franchisees. These standards include experience, personal and financial reputation and stability, required financial resources, willingness and ability to devote full-time efforts to the business, and any other conditions Bumble Roofing may reasonably apply when evaluating new franchisees.
Additionally, the proposed transferee, including stockholders, partners, members, or owners of a beneficial interest in a proposed corporation, partnership, limited liability company, or other entity transferee, may be required to provide personal guarantees, ensuring the transferee's performance of their obligations under the agreements. Bumble Roofing will not allow any assignment to a competitor due to the confidential information and trade secrets available to a franchisee.
In practice, this means that a potential buyer will need to undergo a similar vetting process as a new franchisee. This could include submitting financial statements, undergoing background checks, and demonstrating relevant experience. The personal guarantee requirement is also significant, as it means the transferee will be personally liable for the franchise's obligations. The restriction on transfers to competitors is a standard clause in franchise agreements to protect the franchisor's business interests.
It is important for a franchisee looking to sell their Bumble Roofing franchise to find a buyer who not only has the financial resources but also meets Bumble Roofing's criteria for new franchisees. Franchisees should also be aware of the costs associated with the transfer, as the transferee is responsible for covering all of Bumble Roofing's costs related to granting approval, including legal fees, as well as all transfer-related expenses such as professional fees and leasing expenses.