Does Bumble Roofing have to provide a reason for terminating the agreement?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
itten approval of Franchisor, which approval may be granted or withheld in Franchisor's sole discretion.
3. TERM OF THE AGREEMENT AND LICENSE
3.1 This Agreement and the License granted shall continue for a period of seven years ("Initial Term"). This Initial Term shall begin on the date this Agreement is executed by Franchisor, subject, however, to termination in accordance with the provisions of this Agreement. When the Initial Term expires Franchisee shall have the option to extend its rights to operate the Roofing Business for one additional term equal to the length of Franchisor's then-current initial term as described in its then-current BUMBLE ROOFING® franchise agreement ("Successor Term"), provided Franchisor determines in its sole and absolute discretion that Franchisee has met all of the following requirements:
- (a) Franchisee has not failed to remedy any breach of this Agreement specified by Franchisor in a written notice to Franchisee as per Sections 17.1 or 17.2;
- (b) Franchisee has not committed and received notice of two or more breaches of this Agreement in the 12 months prior to the end of the current Initial Term, even if such breaches were timely remedied;
- (c) Franchisee has given Franchisor a written notice of intent to extend its rights to operate the Roofing Business no less than two months or more than six months prior to expiration of the Initial Term;
- (d) Franchisee is current in its payment obligations to Franchisor, Franchisor's Affiliates, and Franchisee's trade creditors;
- (e) Franchisee has met Franchisor's then-current qualifications for new or renewing BUMBLE ROOFING® franchisees;
- (f) Franchisee executes a successor franchise agreement ("Successor Franchise Agreement") and all other agreements in the form then being used by Franchisor in granting new franchises, which may contain materially different terms and conditions than this Agreement, provided that Franchisee will pay Franchisor the Successor Franchise Fee (defined below) instead of the Initial Franchise Fee and the Successor Term will be no less than five years, as described above.
- (g) Franchisee pays Franchisor the successor franchise fee equal to the greater of $5,000 or 25% of the then existing Initial Franchise Fee as described in the Franchisors then existing Franchise Agreement ("Successor Franchise Fee"), which is due and payable to Franchisor at the time of signing the Successor Franchise Agreement;
- (h) Franchisee executes a general release of all claims Franchisee may have against Franchisor, its officers, directors, members, shareholders, agents, Affiliates, and employees, whether in their corporate and/or individual capacities.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
Based on the 2025 Bumble Roofing Franchise Disclosure Document, Bumble Roofing does not always have to provide a specific reason for terminating the franchise agreement. Section 3.1 states that the initial term of the agreement is seven years but is subject to termination according to the agreement's provisions. Furthermore, section 3.2 indicates that Bumble Roofing has the right to modify a franchisee's territory when a successor franchise agreement is executed.
According to section 3.1, a franchisee can extend their rights to operate the roofing business for one additional term if Bumble Roofing determines the franchisee has met specific requirements. These requirements include remedying any breach specified by Bumble Roofing in a written notice, not committing two or more breaches of the agreement in the 12 months before the end of the current initial term, being current in payment obligations, meeting Bumble Roofing's qualifications for new or renewing franchisees, and executing a successor franchise agreement.
However, Bumble Roofing's discretion in determining whether these conditions are met suggests that they may not always need to provide a specific, detailed reason for non-renewal, which effectively acts as a termination of the franchise relationship at the end of the initial term. While Bumble Roofing must provide written notice of breaches during the initial term, the decision to renew the agreement appears to be at their "sole and absolute discretion," provided the franchisee has met the listed requirements.