What are the insurance requirements that a Bumble Roofing franchisee must comply with upon commencement of the Initial Term?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.1 Franchisee must comply with the following insurance requirements:
- (a) Franchisee shall, upon commencement of the Initial Term, purchase and at all times maintain in full force and effect during the Initial Term and any Interim Period, insurance policies, in such amounts and on such terms as prescribed below or in the Manual, issued by one or more insurance companies acceptable to Franchisor.
- (b) All insurance policies shall name Franchisor and its parent, Empower Brands, LLC, their affiliates and such other parties as Franchisor may designate, as additional insureds. Coverage for the additional insureds shall not be limited to claims of vicarious liability. In addition, the Franchisee's insurers shall endorse or otherwise amend the policies such that their policies: (a) are primary and non-contributory; (b) waive any right of subrogation as respects the additional insureds; and (c) provide the additional insureds 30 days' advance written notice of cancellation or other material change in coverage.
- (c) Franchisee shall provide Franchisor with original or duplicate copies of all insurance policies, including endorsements, or other proof of insurance acceptable to Franchisor evidencing coverage required by this Section, together with proof of payment within 10 days of
issuance thereof. Franchisee shall also furnish Franchisor with all proof of insurance coverage required by this Section, including endorsements, within 10 days after any of the following events: (a) all policy renewals, but not less often than annually, and (b) all instances of any change to, addition to, or replacement of any insurance. The policies and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. All proof of insurance is subject to approval by Franchisor. Franchisor reserves the right to require complete, certified copies of all required insurance policies at any time in Franchisor's sole discretion.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, franchisees must adhere to specific insurance requirements from the start of their Initial Term. Bumble Roofing requires franchisees to purchase and maintain insurance policies throughout the Initial Term and any Interim Period. These policies must be issued by insurance companies acceptable to Bumble Roofing, and the amounts and terms of the coverage must comply with the specifications outlined in the FDD or the Bumble Roofing manual.
The insurance policies must name Bumble Roofing and its parent company, Empower Brands, LLC, along with their affiliates and any other parties designated by Bumble Roofing, as additional insureds. The coverage for these additional insureds should not be limited to claims of vicarious liability. Furthermore, the franchisee's insurance providers must endorse or amend their policies to ensure they are primary and non-contributory, waive any subrogation rights concerning the additional insureds, and provide the additional insureds with 30 days' advance written notice of any cancellation or material changes to the coverage.
Bumble Roofing franchisees are required to provide Bumble Roofing with original or duplicate copies of all insurance policies, including endorsements, or other proof of insurance acceptable to Bumble Roofing, along with proof of payment, within 10 days of the policy's issuance. Franchisees must also furnish Bumble Roofing with proof of insurance coverage, including endorsements, within 10 days after policy renewals (at least annually) and any changes, additions, or replacements to the insurance. All policies and endorsements must be signed by an authorized representative of the insurer, and all proof of insurance is subject to Bumble Roofing's approval. Bumble Roofing retains the right to request complete, certified copies of all required insurance policies at any time, at its discretion.
It is important for prospective Bumble Roofing franchisees to carefully review the insurance requirements detailed in the Franchise Disclosure Document and the Bumble Roofing manual to ensure they can secure and maintain the necessary coverage. Failure to comply with these insurance requirements could result in a breach of the franchise agreement.