Does Bumble Roofing require franchisees to disclose any existing litigation or legal proceedings?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must notify Franchisor in writing within five (5) days of the commencement of any action, suit, proceeding or investigation, and of the issuance of any order, injunction, award of decree, by any court, agency, or other governmental instrumentality that may adversely affect the operation or financial condition of Franchisee or the Business.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, franchisees are required to notify the franchisor in writing about any legal actions that could impact their franchise. Specifically, franchisees must inform Bumble Roofing within five days of the commencement of any action, suit, proceeding, or investigation by a court, agency, or governmental body that may adversely affect the operation or financial condition of the franchise or the business.
This notification requirement ensures that Bumble Roofing is aware of any potential legal or financial issues that could affect the franchisee's ability to operate the business or uphold the Bumble Roofing brand standards. It allows Bumble Roofing to assess the situation and take appropriate steps to protect its interests and the interests of other franchisees in the system.
For a prospective Bumble Roofing franchisee, this means being transparent and proactive in disclosing any legal or investigative matters that could have a negative impact on their franchise. Failure to do so could be considered a breach of the franchise agreement and could potentially lead to termination of the agreement. This requirement is fairly standard in franchising, as franchisors need to manage risk and protect their brand reputation.