Under what circumstances will a Bumble Roofing franchisee be required to indemnify the franchisor?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
17.21 Franchisee acknowledges and agrees that in addition to, and not in lieu of, all other remedies or rights that Franchisor might otherwise have by virtue of Franchisee's breach of this Agreement, Franchisee must reimburse Franchisor for all attorneys' fees, costs, and expenses (and interest on such fees, costs and expenses) Franchisor incurs to enforce the terms of this Agreement or any obligation owed to Franchisor by Franchisee, including but not limited to amounts incurred in connection with preparation of default notices and related correspondence, or to defend any claim that Franchisee brings against Franchisor.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, a franchisee must reimburse Bumble Roofing for all attorneys' fees, costs, and expenses (plus interest) that Bumble Roofing incurs to enforce the terms of the Franchise Agreement or any obligation the franchisee owes to Bumble Roofing. This includes, but isn't limited to, costs associated with preparing default notices and related correspondence, or defending any claim that the franchisee brings against Bumble Roofing.
This means that if a Bumble Roofing franchisee breaches the Franchise Agreement and Bumble Roofing takes legal action to enforce the agreement, the franchisee will be responsible for covering Bumble Roofing's legal costs. This could include situations where the franchisee fails to meet performance standards, violates brand standards, or otherwise breaches the terms of the agreement. The franchisee's obligation to cover these costs is in addition to any other remedies or rights that Bumble Roofing may have due to the breach.
For a prospective Bumble Roofing franchisee, this highlights the importance of fully understanding the terms of the Franchise Agreement and adhering to them. Failure to do so could result in not only potential termination of the franchise but also significant financial liability for legal fees and expenses incurred by Bumble Roofing. This is a fairly standard clause in franchise agreements, intended to protect the franchisor from bearing the costs of enforcing the agreement when a franchisee is in breach.