factual

After a valid assignment of the Bumble Roofing Franchise Agreement, who is liable for the franchisee's obligations?

Bumble_Roofing Franchise · 2025 FDD

Answer from 2025 FDD Document

Upon termination or expiration of the Franchise Agreement (without the extension of Franchisee's rights to operate the Roofing Business), Franchisor shall have the right and is hereby empowered to effectuate the assignment of the Telephone Numbers and Listings and the URLs, and, in such event, Franchisee shall have no further right, title or interest in the Telephone Numbers and Listings and URLs, and shall remain liable to the Telephone Company and the ISP for all past due fees owing to the Telephone Company and the ISP on or before the effective date of the assignment hereunder.

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2025 FDD)

Based on the 2025 Bumble Roofing Franchise Disclosure Document, the franchisee remains liable to the Telephone Company and the ISP (internet service provider) for all past due fees owing to the Telephone Company and the ISP on or before the effective date of the assignment of telephone numbers and URLs.

This means that even after the franchise agreement is assigned to a new franchisee, the original franchisee is still responsible for any outstanding payments owed to the telephone company and internet service provider up to the date the assignment takes effect. This ensures that these service providers are not left with unpaid bills due to the transfer of the franchise.

For a prospective Bumble Roofing franchisee, this highlights the importance of ensuring all accounts with the Telephone Company and ISP are current before assigning the Franchise Agreement. Failure to do so could result in the original franchisee remaining liable for these debts even after the franchise has been transferred.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.