After termination of the Bumble Roofing franchise agreement, for how long are franchisees restricted from having an interest in a competing business?
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.
14.4 The parties have attempted in Section 14.2 to limit Franchisee's right to compete only to the extent necessary to protect Franchisor from unfair competition.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, franchisees, guarantors, the Designated Business Manager, or the franchisee's owners are restricted from having a direct or indirect interest in a competing business for two years after the termination or expiration of the Initial Term or any Interim Period. This restriction applies regardless of the cause of termination, or the transfer, sale, or assignment of the agreement by the franchisee.
The restriction applies to any business within the franchisee's territory, any other Bumble Roofing franchisee's territory, or within 10 miles of either of those territories. It also applies within 10 miles of any Bumble Roofing or affiliate-owned roofing business. The restriction covers any direct or indirect interest, including ownership, investment, partnership, or acting as a director, officer, employee, consultant, representative, or agent.
The FDD also states that if someone refuses to comply with these obligations, the two-year period will begin when a court or arbitrator enforces this section. Bumble Roofing states that they have attempted to limit the franchisee's right to compete only to the extent necessary to protect Bumble Roofing from unfair competition.