What obligations are assumed when signing the Guaranty and Assumption of Franchisee's Obligations for a Bumble Roofing franchise?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
Each individual who owns, directly or indirectly, a 5% or greater interest in you (and, if you sign the Franchise Agreement as an individual, your immediate family defined as your spouse and domestic partner) must sign the Guaranty and Assumption of Franchisee's Obligations assuming and agreeing to discharge all of your obligations and comply with all restrictions under the Franchise Agreement (See Attachment B to the Franchise Agreement).
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 42)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, each individual owning 5% or greater interest in the franchisee entity (and the franchisee's immediate family if the franchisee is an individual) must sign the Guaranty and Assumption of Franchisee's Obligations. By signing this document, these individuals assume and agree to fulfill all of the franchisee's obligations and comply with all restrictions outlined in the Franchise Agreement.
This requirement ensures that Bumble Roofing has recourse to the personal assets of the owners if the franchise fails to meet its financial or operational obligations. It also aligns the interests of the owners with the success of the franchise, as they are personally liable for its performance. This is a common practice in franchising, as it provides the franchisor with an additional layer of security and encourages franchisees to operate their businesses responsibly.
Prospective Bumble Roofing franchisees should carefully review the Franchise Agreement and the Guaranty and Assumption of Franchisee's Obligations to fully understand the scope of their personal liability. They should also consult with an attorney or financial advisor to assess the potential risks and benefits of signing such a document. It is important to note that this requirement applies to anyone with a significant ownership stake in the franchise, not just the primary franchisee.