Does the Bumble Roofing non-compete agreement apply during any interim period of the agreement?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
any): The Minimum Royalty Fees shall be abated during the following FRANCHISOR: BUMBLE ROOFING FRANCHISOR, LLC
ATTACHMENT B TO FRANCHISE AGREEMENT
GUARANTY AND ASSUMPTION OF FRANCHISEE'S OBLIGATIONS
| In consideration of, and as an inducement to, the execution of the Franchise Agreement executed between and Bumble Roofing FRANCHISOR, LLC, | ||
|---|---|---|
| ("Franchisor") on, 20 ("Agreement") each of the undersigned hereby personally and unconditionally: | ||
| 1. | Guarantees to Franchisor and its successors and assigns, for the Initial Term, including any Interim Period thereof, that ("Franchisee") shall punctually pay and perform each and every undertaking, agreement and covenant set forth in the Agreement; and | |
| 2. | Agrees to be personally bound by, and personally liable for the breach of, each and every provision in the Agreement, including but not limited to the terms of Section 14. Each of the undersigned waives the following: | |
| 1. | Acceptance and notice of acceptance by Franchisor of the foregoing undertaking; | |
| 2. | Notice of demand for payment of any indebtedness or nonperformance of any obligations | |
| hereby guaranteed; | ||
| 3. |
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Bumble Roofing Franchise Disclosure Document, the non-compete agreement does apply during any interim period. Specifically, the guarantee provided by the franchisee extends to the initial term, including any interim period. This means that the franchisee is still bound by the terms of the agreement, including non-compete obligations, during any interim period.
An interim period occurs if the franchisee continues to operate the Bumble Roofing business on a month-to-month basis after the initial term expires but before a Successor Franchise Agreement is signed. During this time, all obligations of the franchisee remain in full force and effect, as if the original agreement had not expired. This ensures that Bumble Roofing's interests are protected even during this transitional phase.
This provision is significant for prospective franchisees because it clarifies that the restrictions and obligations of the franchise agreement do not simply disappear if the agreement term ends and negotiations for renewal are ongoing. Franchisees must continue to adhere to all terms, including non-compete clauses, until the interim period is formally terminated. This could impact a franchisee's ability to explore other business ventures or opportunities during this time.