What is the 'Interim Period' as defined in the Bumble Roofing franchise agreement, and how is it initiated?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.4 If Franchisee does not sign a Successor Franchise Agreement prior to the expiration of this Agreement and continues to accept the benefits of this Agreement after the expiration of this Agreement, then at the option of Franchisor, this Agreement may be treated either as (i) expired as of the date of expiration with Franchisee then operating without a license or franchise to do so and in violation of Franchisor's rights; or (ii) continued on a month-to-month basis ("Interim Period") until one party provides the other with written notice of such party's intent to terminate the Interim Period, in which case the Interim Period will terminate 30 days after receipt of the notice to terminate the Interim Period. In the latter case, all obligations of Franchisee shall remain in full force and effect during the Interim Period as if this Agreement had not expired, and all obligations and restrictions imposed on Franchisee upon expiration of this Agreement shall be deemed to take effect upon termination of the Interim Period.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the "Interim Period" refers to a month-to-month continuation of the franchise agreement after its initial term expires, but before a Successor Franchise Agreement is signed. This period is not automatic; it exists at the sole option of Bumble Roofing.
The Interim Period is initiated if the franchisee continues to accept the benefits of the franchise agreement after its expiration but has not signed a Successor Franchise Agreement. In this situation, Bumble Roofing can choose to treat the agreement as either expired (with the franchisee operating without a license) or continued on a month-to-month basis.
During the Interim Period, all obligations of the franchisee remain in full force, as if the original agreement had not expired. Similarly, all obligations and restrictions that would normally take effect upon the expiration of the agreement are instead deferred until the termination of the Interim Period. Either party can terminate the Interim Period by providing 30 days' written notice to the other party.