After termination of the Bumble Roofing agreement, can the franchisee have an indirect interest in a competing business through a relative?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) Upon termination or expiration of the Initial Term or any Interim Period, regardless of the cause, or the transfer, sale or assignment of this Agreement by Franchisee, neither Franchisee, any guarantors, the Designated Business Manager nor Franchisee's owners will have any direct or indirect interest (i.e., through a relative) as a disclosed or beneficial owner, investor, partner, director, officer, employee, consultant, representative or agent, for two (2) years; in any Business: (1) in the Territory or any other franchisee's territory; (2) within 10 miles of the Territory or any other franchisee's territory; or (3) within 10 miles of any Franchisor or Affiliate owned Roofing Business.
14.3 If any person restricted by this Section 14 refuses to voluntarily comply with the foregoing obligations, the 2-year period will commence upon the entry of any order of a court or arbitrator enforcing this Section 14.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, after the termination or expiration of the initial term of the franchise agreement, franchisees are restricted from having a direct or indirect interest in a competing business. This restriction extends to interests held through a relative.
Specifically, the franchisee, any guarantors, the Designated Business Manager, and the franchisee's owners are prohibited from having any direct or indirect interest in a competing business for two years. This includes being a disclosed or beneficial owner, investor, partner, director, officer, employee, consultant, representative, or agent.
The geographic scope of this restriction includes (1) the Territory or any other franchisee's territory, (2) within 10 miles of the Territory or any other franchisee's territory, or (3) within 10 miles of any Bumble Roofing Franchisor or Affiliate owned Roofing Business. If someone refuses to comply with these obligations, the two-year period will begin upon a court or arbitrator enforcing this section.