What service activities must a Bumble Roofing franchisee cease when an adjacent territory is sold?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
4.3 Franchisee may be granted, at Franchisor's sole discretion, express permission to sell or service customers in an unsold territory adjacent to Franchisee's Territory ("Adjacent Territory"); provided that Franchisee agrees that when the Adjacent Territory is granted to another franchisee by Franchisor, Franchisee will, upon receipt of written notice from Franchisor, cease all its sales and service efforts within the Adjacent Territory and, within 10 days of such notice: (a) return to Franchisor all lists of customers and prospects within the Adjacent Territory; (b) assign all customer contracts within the Adjacent Territory to Franchisor or its designee; and (c) pay to Franchisor any amounts (or a pro rata portion of any amounts) paid by customers within the Adjacent Territory for Services Franchisee has not yet performed.
For example, if a customer pre-paid for services and Franchisee had performed half of the services, Franchisee must pay to Franchisor 50% of the amount the customer paid Franchisee.
Franchisee shall report Gross Revenues from sales in an Adjacent Territory on a separate reporting form.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 42–43)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, a franchisee may be granted permission to sell or service customers in an unsold territory adjacent to their own. However, this permission is contingent upon the agreement that when the adjacent territory is granted to another franchisee, the original franchisee must cease all sales and service efforts within that adjacent territory. This cessation of activities is triggered by written notice from Bumble Roofing.
Upon receiving such notice, the franchisee must take several actions within 10 days. First, they must return to Bumble Roofing all lists of customers and prospects within the adjacent territory. Second, they must assign all customer contracts within the adjacent territory to Bumble Roofing or its designee. Finally, the franchisee must pay to Bumble Roofing any amounts (or a pro rata portion of any amounts) paid by customers within the adjacent territory for services the franchisee has not yet performed.
For example, if a customer pre-paid for services and the franchisee had performed half of the services, the franchisee must pay Bumble Roofing 50% of the amount the customer received. The franchisee is also required to report gross revenues from sales in an adjacent territory on a separate reporting form. This policy ensures a smooth transition when a new franchisee takes over an adjacent territory and prevents conflicts between franchisees.