What must a transferee do to relieve Bumble Roofing of liability after a transaction?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) Franchisor's consent to a transfer of any interest subject to the restrictions of this Section shall not constitute a waiver of any claim it may have against the assignor, nor shall it be deemed a waiver of Franchisor's right to demand exact compliance with any of the terms of this Agreement by the assignee;
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Bumble Roofing's consent to a transfer of any interest does not relieve the assignor of any claims Bumble Roofing may have against them. Furthermore, it does not waive Bumble Roofing's right to demand exact compliance with any of the terms of the Franchise Agreement by the assignee. This means that even if a franchisee sells or transfers their franchise to someone else with Bumble Roofing's approval, the original franchisee may still be held liable for any existing claims or non-compliance issues that occurred during their tenure.
This provision protects Bumble Roofing by ensuring that franchisees cannot simply transfer their way out of existing obligations or liabilities. It also motivates franchisees to ensure their business is fully compliant before attempting to transfer it. The new franchisee (assignee) is also responsible for complying with the franchise agreement.
For a prospective Bumble Roofing franchisee, this highlights the importance of maintaining full compliance with the Franchise Agreement throughout the term. If they plan to sell or transfer the franchise in the future, they should ensure all obligations are met to avoid potential liability after the transfer. This also means that if you are looking to buy a Bumble Roofing franchise from a current franchisee, you should conduct thorough due diligence to ensure that the franchise is in good standing and that there are no outstanding issues that could become your responsibility.
This type of clause is fairly standard in franchise agreements. It is designed to protect the franchisor's interests and maintain the integrity of the franchise system. Franchisees should carefully review the transfer provisions in the Franchise Agreement and seek legal counsel to fully understand their rights and obligations.