factual

After termination, expiration, transfer, sale, or assignment of the Bumble Roofing agreement, what is the duration of the non-compete period for Franchisee, guarantors, the Designated Business Manager, and Franchisee's owners?

Bumble_Roofing Franchise · 2025 FDD

Answer 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, or any interim period, or after the transfer, sale, or assignment of the agreement, the franchisee, any guarantors, the Designated Business Manager, and the franchisee's owners are subject to a non-compete agreement. This agreement restricts them from having any direct or indirect interest in a competing business for a period of two years.

The non-compete restrictions apply to 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 Bumble Roofing Franchisor or Affiliate owned Roofing Business. This means that for two years after leaving the Bumble Roofing system, a franchisee and related parties cannot be involved in a similar business within a defined geographical area that includes their former territory, other franchisees' territories, and areas near corporate-owned businesses.

It's important to note that if any person restricted by this non-compete refuses to comply voluntarily, the two-year period begins only upon the entry of a court or arbitrator's order enforcing the non-compete agreement. This clause provides some clarity on when the non-compete clock starts ticking, especially in cases where legal action is necessary to enforce the restriction. Bumble Roofing franchise agreements often include non-compete clauses to protect their market and brand. These clauses are generally enforceable but must be reasonable in scope and duration to be upheld in court.

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.