What section of the Bumble Roofing franchise agreement outlines the terms of the agreement and license?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the terms of the agreement and license are detailed in Section 3, titled "TERM OF THE AGREEMENT AND LICENSE" within Item 22, which covers contracts. This section specifies that the initial term for the Bumble Roofing franchise agreement and license is seven years, beginning on the date the agreement is executed by the franchisor.
The franchisee has the option to extend the agreement to operate the roofing business for one additional term, referred to as the "Successor Term." The length of this successor term will be equal to the franchisor's then-current initial term as described in the Bumble Roofing franchise agreement at that time. However, this extension is contingent upon Bumble Roofing determining, at its sole discretion, that the franchisee has met certain requirements.
These requirements include rectifying any breaches of the agreement, avoiding multiple breaches within the 12 months prior to the initial term's end, providing timely written notice of intent to extend, maintaining current payment obligations, meeting the franchisor's qualifications for new or renewing franchisees, and executing a successor franchise agreement. The successor franchise agreement may contain different terms and conditions than the original agreement, and the franchisee will be required to pay a Successor Franchise Fee instead of the Initial Franchise Fee. The Successor Term will be no less than five years.