What rights does the guarantor waive regarding actions against the Bumble Roofing franchisee?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, Outdoor Living Brands HoldCo LLC, a Delaware limited liability company (the "Guarantor"), located at 2426 Old Brick Road, Glen Allen, Virginia 23060, absolutely and unconditionally guarantees to assume the duties and obligations of Bumble Roofing Franchisor, LLC located at 2426 Old Brick Road, Glen Allen, Virginia 23060 (the "Franchisor"), under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This guarantee continues until all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the Guarantor for Bumble Roofing waives notice of acceptance of the guarantee. However, the Guarantor does not waive receipt of notice of default on the part of the Franchisor. This means that while the Guarantor is immediately bound by the guarantee, they are still entitled to be informed if Bumble Roofing fails to meet its obligations under the franchise agreement.
The guarantee ensures that Outdoor Living Brands HoldCo LLC, as the Guarantor, absolutely and unconditionally guarantees to assume the duties and obligations of Bumble Roofing Franchisor, LLC under its franchise registration and Franchise Agreement. This obligation remains until all obligations of the Franchisor are satisfied or the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged.
This arrangement provides franchisees with assurance that the Franchisor's obligations will be met, backed by the Guarantor. However, it is important to note that the Guarantor retains the right to receive notice of default, allowing them to stay informed and potentially take action to protect their interests if Bumble Roofing fails to meet its obligations.