Does the non-compete agreement for Bumble Roofing extend to areas where Bumble Roofing or its affiliates own a roofing business?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement or Other Agreement | Summary | |
|---|---|---|---|
| q. | Non-competition covenants during the term of the franchise | Section 14 of Franchise Agreement | No involvement in Competitive Business. A "Competitive Business" is any business offering and selling roofing installation, maintenance, and repairs, and related products and services, for residential and commercial customers. |
| r. | Non-competition covenants after the franchise is terminated or expires | Sections 14, 17 of Franchise Agreement | Franchise Agreement: No Competitive Business for 2 years (i) in the Territory or any other Franchisee's Territory; (ii) 10 miles of the Territory or any other Franchisee's Territory or (iii) 10 miles of any of our or our affiliate owned Roofing Business. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–45)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the non-compete agreement does extend to areas where Bumble Roofing or its affiliates own a roofing business. Specifically, after the franchise is terminated or expires, a franchisee is restricted from engaging in a Competitive Business for two years within certain geographic limits. These limits include the franchisee's territory, any other franchisee's territory, and within 10 miles of any Bumble Roofing or its affiliate-owned roofing business.
This non-compete obligation has significant implications for a franchisee who decides to leave the Bumble Roofing system. It restricts their ability to operate a competing roofing business within the defined areas, which could limit their income-earning potential. The franchisee needs to carefully consider the geographic scope of this restriction, especially if Bumble Roofing or its affiliates have a widespread presence.
The definition of "Competitive Business" is broad, encompassing any business offering and selling roofing installation, maintenance, and repairs, and related products and services, for residential and commercial customers. This means a former franchisee cannot be involved in any aspect of a competing roofing business, even if it's not identical to the Bumble Roofing model. The franchisee should seek legal counsel to fully understand the enforceability and implications of this non-compete clause in their specific state, as some states have stricter rules regarding non-compete agreements.
It is important to note that the terms of the Franchise Agreement, including the non-compete clause, are governed by Virginia law, subject to state law. However, addenda for certain states like California, Illinois, New York, and Rhode Island, specify that certain provisions of the Franchise Agreement may not be enforceable under their respective state laws. Therefore, a prospective franchisee should carefully review any state-specific addenda to understand how local laws may modify the terms of the franchise agreement.