Does the non-compete obligation for Bumble Roofing extend to the franchisee's owners and guarantors?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
(e) Notwithstanding any other provision of this Agreement, there may be certain, limited circumstances where applicable law allows for the disclosure of certain Trade Secrets, as specified in the Manual.
14.2 Restrictive Covenants. Franchisee covenants and agrees that:
(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.
(b) Upon termination or expiration of the Initial Term or any Interim Period, regardless of the cause, or the transfer, sale or assignment of this Agreement by Franchisee, neither Franchisee, any guarantors, the Designated Business Manager nor Franchisee's owners will have any direct or indirect interest (i.e., through a relative) as a disclosed or beneficial owner, investor, partner, director, officer, employee, consultant, representative or agent, for two (2) years; in any Business: (1) in the Territory or any other franchisee's territory; (2) within 10 miles of the Territory or any other franchisee's territory; or (3) within 10 miles of any Franchisor or Affiliate owned Roofing Business.
14.3 If any person restricted by this Section 14 refuses to voluntarily comply with the foregoing obligations, the 2-year period will commence upon the entry of any order of a court or arbitrator enforcing this Section 14.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the non-compete obligations do extend to the franchisee, their owners, guarantors, and Designated Business Managers. During the initial term of the agreement, these parties are restricted from engaging in any business that competes with Bumble Roofing. This restriction applies whether they act individually or through another business entity, and it requires the franchisor's prior written consent.
Upon termination or expiration of the initial term, or if the franchise is transferred, sold, or assigned, the non-compete extends for two years. During this period, the franchisee, any guarantors, the Designated Business Manager, and the franchisee's owners are prohibited from having a direct or indirect interest in any competing business. This includes being an owner, investor, partner, director, officer, employee, consultant, representative, or agent.
The geographic scope of this post-term non-compete includes the territory, any other franchisee's territory, and areas within 10 miles of those territories, as well as areas within 10 miles of any Bumble Roofing or affiliate-owned roofing business. If any person restricted by this section refuses to comply, the two-year period begins upon a court or arbitrator enforcing the restriction.