What actions can Bumble Roofing take if a payment on the Promissory Note is not made?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
Any payment is late if not received by holder within 10 days after it is due.
If a payment is late, holder may, in its sole discretion elect to;
- A.
Declare the entire unpaid principal and interest balances immediately due and payable; or
- B.
Accept the late payment along with a late charge in the amount of 10% of the amount of the late payment.
The late charge will be for the purpose of compensating holder for additional expenses which it is recognized that holder will incur as a result of the late payment.
All payments, as of the date they are received, will first be credited to any late charges due; the balance, if any, will then be credited to the outstanding interest balance; and the balance, if any, will then be credited to the outstanding principal balance.
Source: Item 10 — FINANCING (FDD page 30)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, if a franchisee is late on a payment, which is defined as not received within 10 days after it is due, Bumble Roofing has specific recourse options. Bumble Roofing, in its sole discretion, can either declare the entire unpaid principal and interest balances immediately due and payable or accept the late payment.
If Bumble Roofing chooses to accept the late payment, it can also impose a late charge. This late charge will be 10% of the amount of the late payment. The purpose of this charge is to compensate Bumble Roofing for the additional expenses it anticipates incurring as a result of the late payment.
The FDD also specifies how payments are credited. As of the date they are received, payments are first applied to any late charges due. After the late charges are covered, the remaining balance is credited to the outstanding interest balance. Finally, any remaining balance is then credited towards the outstanding principal balance.