Can Bumble Roofing change the royalty fees in a Successor Franchise Agreement?

According to Bumble Roofing's 2025 Franchise Disclosure Document, the terms and conditions within the Successor Franchise Agreement may differ from the original agreement. Specifically, Item 22, Section 3.1(f) states that the Successor Franchise Agreement may contain materially different terms and conditions than the original agreement. However, the franchisee will pay the Successor Franchise Fee instead of the Initial Franchise Fee, and the Successor Term will be no less than five years.

This means that Bumble Roofing has the right to modify various aspects of the franchise agreement when a franchisee seeks to renew their term. These modifications could extend to various operational requirements, standards, and potentially, the royalty fees. While the document does not explicitly state that royalty fees will change, the broad language suggests that such changes are possible.

For a prospective Bumble Roofing franchisee, this implies that the terms of renewal are not guaranteed to be the same as the initial agreement. It is essential to carefully review the Successor Franchise Agreement to understand any changes to the obligations, including potential adjustments to royalty fees. Franchisees should be prepared for the possibility of renegotiated terms that reflect Bumble Roofing's then-current standards and business practices. It would be prudent for a franchisee to seek legal counsel to review the Successor Franchise Agreement before signing.

It is also important to note that the franchisor has the discretion to determine whether a franchisee meets the requirements for renewal. Meeting these qualifications is necessary for the franchisee to be offered a Successor Franchise Agreement with potentially different terms and conditions.