Can Bumble Roofing change the frequency of royalty fee payments?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
Each failure to pay Royalty Fees, National Branding & Marketing Fees, and other amounts payable to Franchisor when due shall constitute a material breach of this Agreement.
Franchisee acknowledges that this Section 6.7 shall not constitute Franchisor's agreement to accept such payments after same are due or a commitment by Franchisor to extend credit to, or otherwise finance Franchisee's operation of the Roofing Business.
Further, Franchisee acknowledges that failure to pay all such amounts when due shall, notwithstanding the provisions of this Section 6.7, constitute grounds for termination of this Agreement, as provided in this Agreement.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
Based on the 2025 Bumble Roofing Franchise Disclosure Document, the document does not specify whether Bumble Roofing can change the frequency of royalty fee payments. The FDD does mention that each failure to pay Royalty Fees, National Branding & Marketing Fees, and other amounts payable to Franchisor when due shall constitute a material breach of the Franchise Agreement.
Additionally, the FDD states that the franchisee acknowledges that this section does not constitute Bumble Roofing's agreement to accept such payments after they are due or a commitment by Bumble Roofing to extend credit to, or otherwise finance, the franchisee's operation of the Roofing Business. The franchisee also acknowledges that failure to pay all such amounts when due shall constitute grounds for termination of the agreement.
Because the FDD does not specify whether Bumble Roofing can change the frequency of royalty fee payments, prospective franchisees should seek clarification from the franchisor regarding this matter. Understanding the terms and conditions related to royalty fee payments is crucial for managing the financial obligations and maintaining a healthy franchisor-franchisee relationship.