What is the consequence if a Bumble Roofing franchisee understates gross revenue on two occasions?

I am unable to provide information regarding the specific consequences a Bumble Roofing franchisee might face for understating gross revenue on two occasions, according to the 2025 Franchise Disclosure Document excerpts provided. The excerpts do discuss the franchisee's obligation to report gross revenues accurately and the potential for termination under certain circumstances, but they do not explicitly detail the penalties for underreporting revenue multiple times.

Item 3.1(b) states that a franchisee may not be eligible for a renewal term if they have committed and received notice of two or more breaches of the agreement in the 12 months prior to the end of the current Initial Term, even if such breaches were timely remedied. While this clause does not specifically address underreporting revenue, it indicates that multiple breaches of the agreement, in general, can impact the franchisee's ability to renew their franchise agreement.

A prospective Bumble Roofing franchisee should ask the franchisor directly about the specific consequences of underreporting gross revenue, especially if it occurs repeatedly. Understanding the franchisor's policies on financial reporting and the penalties for non-compliance is crucial for making an informed investment decision.