What is the timeframe for Bumble Roofing to terminate the agreement after a franchisee receives notice of termination?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.3 Franchisee's failure to give timely notice of Franchisee's intention to extend its rights to operate the Roofing Business, as described in Section 3.1(d) shall be deemed an election not to extend Franchisee's rights to operate the Roofing Business. IN FRANCHISOR'S SOLE DETERMINATION, FRANCHISEE MAY BE DEEMED TO HAVE IRREVOCABLY DECLINED TO EXTEND FRANCHISEE'S RIGHTS TO OPERATE THE ROOFING BUSINESS (AND ITS OPTION SHALL THEREUPON TERMINATE) IF IT FAILS TO EXECUTE AND RETURN TO FRANCHISOR THE SUCCESSOR FRANCHISE AGREEMENT AND OTHER DOCUMENTS REQUIRED BY FRANCHISOR WITHIN 30 DAYS AFTER THEIR DELIVERY TO FRANCHISEE, OR FAILS TO COMPLY IN ANY OTHER WAY WITH THE PROVISIONS OF THIS SECTION 3.
- 3.4 If Franchisee does not sign a Successor Franchise Agreement prior to the expiration of this Agreement and continues to accept the benefits of this Agreement after the expiration of this Agreement, then at the option of Franchisor, this Agreement may be treated either as (i) expired as of the date of expiration with Franchisee then operating without a license or franchise to do so and in violation of Franchisor's rights; or (ii) continued on a month-to-month basis ("Interim Period") until one party provides the other with written notice of such party's intent to terminate the Interim Period, in which case the Interim Period will terminate 30 days after receipt of the notice to terminate the Interim Period. In the latter case, all obligations of Franchisee shall remain in full force and effect during the Interim Period as if this Agreement had not expired, and all obligations and restrictions imposed on Franchisee upon expiration of this Agreement shall be deemed to take effect upon termination of the Interim Period.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Bumble Roofing outlines specific conditions regarding the termination of a franchise agreement. According to Section 3.3, if a franchisee fails to provide timely notice of their intention to extend their rights to operate the Roofing Business, it will be deemed an election not to extend the Franchisee's rights to operate the Roofing Business. Furthermore, Bumble Roofing may deem that the Franchisee has irrevocably declined to extend their rights if the Franchisee fails to execute and return the Successor Franchise Agreement and other required documents within 30 days after their delivery to the Franchisee, or fails to comply in any other way with the provisions of Section 3.
Additionally, Section 3.4 states that if a Franchisee does not sign a Successor Franchise Agreement prior to the expiration of the current agreement but continues to accept the benefits of the agreement after expiration, Bumble Roofing has the option to treat the agreement as either expired (with the Franchisee operating without a license) or continued on a month-to-month basis, referred to as the "Interim Period". If Bumble Roofing chooses the latter, the Interim Period will terminate 30 days after either party provides written notice of their intent to terminate the Interim Period.
These stipulations mean that a Bumble Roofing franchisee needs to be aware of the deadlines and conditions related to extending or renewing their franchise agreement. Failing to meet these requirements could lead to termination of their franchise rights. Franchisees should carefully review Section 3 of the franchise agreement and maintain open communication with Bumble Roofing to ensure compliance and avoid potential termination issues.