Besides the audit costs, what other remedies can Bumble Roofing pursue if a discrepancy is found?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee | Greater of 20% of then-current Franchise Fee or $10,000. | 50% due at the time the request to transfer is made. This amount is non-refundable. The balance is due at the closing of the transfer | See Note 6. |
| Audit | Cost of the audit plus related expenses, provided that the costs of the audit are only due if an irregularity of greater than 5% is discovered in any reported amount, or if reports are not submitted as required. | As incurred | We have the right under the Franchise Agreement to examine certain records including without limitation your financials, bank statements and tax returns. If an examination of these records reveals a discrepancy of more than 5% the full amount of the audit's actual costs will be charged in addition to any unpaid amounts discovered and other remedies as permitted under the Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, if an audit reveals a discrepancy exceeding 5% in any reported amount, or if reports are not submitted as required, Bumble Roofing has the right to charge the full amount of the audit's actual costs. In addition to the audit costs, Bumble Roofing can pursue other remedies as permitted under the Franchise Agreement.
This means that if a Bumble Roofing franchisee's financial records or reports contain errors greater than 5%, or if they fail to submit reports on time, they will be responsible for covering the full cost of the audit. Furthermore, Bumble Roofing retains the right to take additional actions against the franchisee as outlined in the Franchise Agreement.
Prospective Bumble Roofing franchisees should carefully review the Franchise Agreement to understand the full scope of remedies available to Bumble Roofing in the event of financial discrepancies or reporting failures. This includes understanding what constitutes a 'discrepancy,' the specific reporting requirements, and the potential consequences beyond the cost of the audit. It is advisable to seek legal counsel to fully comprehend these terms and their implications.