Can Bumble Roofing apply payments made by a franchisee against any past due indebtedness?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
The acceptance of any interest payment shall not be construed as a waiver by Franchisor of its rights in respect of the default giving rise to such payment and shall be without prejudice to Franchisor's right to terminate this Agreement in respect of such default.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
Based on the 2025 Bumble Roofing Franchise Disclosure Document, the acceptance of any interest payment by Bumble Roofing does not represent a waiver of their rights regarding the default that led to the payment. This means that even if Bumble Roofing accepts an interest payment from a franchisee, they still retain the right to terminate the Franchise Agreement due to the original default.
This policy protects Bumble Roofing's interests by ensuring that accepting payments on past due amounts does not prevent them from taking further action if the franchisee remains in default. For a prospective franchisee, this highlights the importance of staying current with all payments and adhering to the terms of the Franchise Agreement to avoid potential termination, even if interest payments are made on late amounts.
In essence, while Bumble Roofing may accept interest payments, franchisees should not assume this resolves any existing defaults. Franchisees must address the underlying cause of the default to ensure full compliance with the Franchise Agreement and to avoid possible termination by Bumble Roofing.