Does the Bumble Roofing non-compete agreement prevent a franchisee from lending money to a competing business during the initial term?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) During the Initial Term of this Agreement and any Interim Period thereof, Franchisee, its owners, guarantors and Designated Business Managers shall not, without the prior written consent of Franchisor, either individually or in a partnership, corporation, limited liability company, joint venture or other business entity or jointly or in conjunction with any person, firm, association, syndicate or corporation, as principal, agent, shareholder, member, partner, employee or in any manner whatsoever, carry on or be engaged in or be concerned with or interested in or advise, lend money to, guarantee the debts or obligations of or permit its name or any part thereof to be used or employed in any business operating in competition with a roofing business or any Business as carried on during the Initial Term of this Agreement, including any Interim Period thereof.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the non-compete agreement does address lending money to competing businesses during the initial term. Specifically, during the initial term of the Franchise Agreement, the franchisee, its owners, guarantors, and designated business managers are prohibited from lending money to a business operating in competition with Bumble Roofing without prior written consent from the franchisor. This restriction applies whether the franchisee is acting individually or through another business entity.
This non-compete clause is in effect during the initial seven-year term of the agreement. The restrictions also apply to any interim period of the agreement.
This provision aims to prevent franchisees from supporting competing businesses, ensuring their full dedication to the success of their Bumble Roofing franchise. Prospective franchisees should carefully consider this restriction and seek legal counsel to fully understand its implications. If a franchisee violates this clause, it could lead to legal consequences and potential termination of the franchise agreement.