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What rights does Bumble Roofing reserve in Sections 4.2, 4.4, and 4.7 of the franchise agreement?

Bumble_Roofing Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 4.1 During the Initial Term and any Interim Period and for so long as Franchisee is in compliance with all of its obligations hereunder, except as otherwise provided in this Agreement, including Franchisor's reservation of rights as set forth in Sections 4.2, 4.4 and 4.7, neither Franchisor nor any Affiliate will establish or license another person or entity to establish a Roofing Business using the Marks licensed to Franchisee within the Territory encompassed by the boundaries and with the population base set forth in Attachment A, attached hereto and incorporated herein by reference. Except as otherwise specifically provided in this Agreement, this Agreement does not restrict Franchisor or its Affiliates and does not grant rights to Franchisee to pursue any of Franchisor's or its Affiliates other business concepts other than the Roofing Business.

  • 4.2 Franchisee acknowledges that Franchise granted hereunder is non-exclusive and that Franchisor and its Affiliates retain the exclusive right, among others:

    • (a) to use, and to license others to use, the Marks and System for the operation of Roofing Businesses at any location other than in the Territory, regardless of proximity to the Territory;
    • (b) to use, license or franchise the use of trademarks or service marks other than the Marks, whether in alternative channels of distribution or at any location including the Territory, in association with operations that are the same as, similar to or different than Roofing Business;
  • (c) to use the Marks and the System in connection with the provision of other services and products or in alternative channels of distribution such as those described in 4.2(d), at any location including the Territory;

  • (d) to offer the Services or Products, or grant others the right to offer the Services or Products, whether using the Marks or other trademarks or service marks, through alternative channels of distribution, including without limitation, wholesalers, retail outlets or other distribution outlets (other than Roofing Businesses), or by Internet commerce (e-commerce), mail order or otherwise, whether inside or outside the Territory;

  • (e) to use any websites utilizing a domain name incorporating one or more of the words "Bumble Roofing" or similar derivatives thereof.

Franchisor retains the sole right to market on the Internet and use the Marks on the Internet, including all use of websites, domain names, URL's, directory addresses, metatags, linking, advertising, and co-branding and other arrangements.

Franchisee may not independently market on the Internet, or use any domain name, address, locator, link, metatag, or search technique, with words or symbols similar to the Marks or otherwise establish any presence on the Internet without Franchisor's prior written approval.

Franchisor intends that any Franchisee website be accessed only through Franchisor's home page.

Franchisee will provide Franchisor with content for Franchisor's Internet marketing, and will sign Internet and intranet usage agreements, if any.

Franchisor retains the right to approve any linking or other use of its website;

  • (f) to acquire businesses that are the same as or similar to the Roofing Business and operate such businesses regardless of where such businesses are located, including inside the Territory and to be acquired by any third party which operates businesses that are the same as or similar to the Roofing Business regardless of where such businesses are located, including inside the Territory; and

  • (g) to directly or indirectly provide services to National Accounts located inside or outside the Territory as further described in Section 4.7.

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2025 FDD)

According to Bumble Roofing's 2025 Franchise Disclosure Document, Section 4.1 of the franchise agreement states that the franchise granted is non-exclusive. Bumble Roofing and its affiliates retain specific rights as detailed in Sections 4.2, 4.4, and 4.7.

Specifically, Section 4.2 outlines Bumble Roofing's rights to use and license the Marks and System for Roofing Businesses outside the franchisee's territory, regardless of proximity. They can also use, license, or franchise other trademarks or service marks, even those similar to the Marks, in any location, including the franchisee's territory. Bumble Roofing can use the Marks and System for other services and products or through alternative distribution channels, such as wholesalers, retail outlets, e-commerce, or mail order, both inside and outside the territory. Furthermore, Bumble Roofing retains the right to use any websites with domain names incorporating "Bumble Roofing" or similar terms.

Additionally, Bumble Roofing retains the sole right to market on the Internet and use the Marks online, including websites, domain names, URLs, and advertising. Franchisees need written approval to market independently online or use domain names similar to the Marks. Bumble Roofing intends franchisee websites to be accessed through its homepage. The franchisor also has the right to acquire similar businesses, regardless of location, including within the franchisee's territory. Finally, Bumble Roofing can directly or indirectly provide services to National Accounts both inside and outside the franchisee's territory, as described further in Section 4.7.

These reservations of rights have significant implications for prospective franchisees. While franchisees are granted a territory, Bumble Roofing retains considerable freedom to operate and license others outside that territory, use alternative brands, and engage in online marketing. The franchisee's online presence is also subject to Bumble Roofing's control. These factors could potentially impact a franchisee's market share and revenue within their designated territory.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.