What additional costs are added to the insurance amount Bumble Roofing pays on my behalf?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Insurance | Amount paid by us to secure insurance to fulfil your insurance obligations. | As incurred | You must reimburse us for the cost plus 10% plus interest for any amounts we pay on your behalf due to your failure to meet the insurance obligations as defined in your Franchise Agreement. This remedy is cumulative to all other remedies. |
| Interest | Lesser of 1 ½% per month or highest rate of interest allowed by law | As incurred | Begins to accrue after any payments are due and unpaid |
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, if you fail to meet your insurance obligations as defined in the Franchise Agreement, Bumble Roofing may secure insurance on your behalf. If Bumble Roofing pays for your insurance, you must reimburse them for the cost of the insurance, plus an additional 10%, and interest on the amount paid.
The interest charged will be the lesser of 1 ½% per month or the highest rate of interest allowed by law. This interest begins to accrue immediately after any payments are due and remain unpaid. This means that in addition to the cost of the insurance itself, you will be responsible for covering a 10% surcharge and any accrued interest until the amount is fully reimbursed.
This policy is in place to ensure that all Bumble Roofing franchisees maintain the required insurance coverage, protecting both the franchisee and the franchisor from potential liabilities. It is crucial for prospective franchisees to understand these additional costs and ensure they can meet their insurance obligations to avoid incurring these extra charges. Franchisees should clarify with Bumble Roofing what specific insurance policies are required and the process for demonstrating compliance to avoid any potential issues.