Under what conditions might Bumble Roofing require personal guarantees from the proposed transferee or its owners during a franchise transfer?

According to Bumble Roofing's 2025 Franchise Disclosure Document, during a franchise transfer, Bumble Roofing may require personal guarantees from the proposed transferee or the stockholders, partners, members, or owners of a beneficial interest in the proposed transferee entity. These guarantees would be required jointly and severally, ensuring that each guarantor is fully responsible for the transferee's obligations under the agreements. This condition is outlined in Section 15.7(h) of the Franchise Agreement.

This requirement ensures that Bumble Roofing has recourse to individuals with a vested interest in the transferee entity's success, providing an additional layer of security for the franchisor. By obtaining personal guarantees, Bumble Roofing aims to mitigate the risk associated with transferring the franchise to a new owner or entity, ensuring that the new operator is fully committed to fulfilling the franchise obligations.

For a prospective Bumble Roofing franchisee, this means that if they plan to transfer their franchise in the future, the proposed transferee (or its owners) may need to provide personal guarantees. This could impact the pool of potential buyers, as some individuals or entities may be unwilling or unable to provide such guarantees. Franchisees should discuss this requirement with potential transferees early in the transfer process to avoid any surprises or complications. Franchisees should also be aware that Bumble Roofing may expand upon the conditions for transfer in the Manual or otherwise in writing.