What constitutes grounds for termination of the Bumble Roofing Franchise Agreement by the Franchisor?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
he highest legal rate permitted by applicable law, whichever is lower, on all payments due to Franchisor during the period of time said payments are due and unpaid. 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.
- 6.8 Any report of Franchisor's auditor rendered from time to time pursuant to this Section 6, shall be final and binding upon all of the parties hereto.
- 6.9 Franchisee hereby authorizes Franchisor to make reasonable inquiries of Franchisee's bank, suppliers and trade creditors concerning the Business and hereby directs such persons and companies to provide to Franchisor such information and copies of documents pertaining to the Business as Franchisor may request.
- 6.10 Franchisee acknowledges and agrees that Franchisor owns all business records and databases, whether in print, electronic or other form, related to the Business ("Business Records") that include, without limitation, Customer Data (as defined below). Franchisee further acknowledges and agrees that, at all times during the term of this Agreement, Franchisor has the right to access and use the Business
Records as Franchisor determines to be in the best interest of Franchisor or the System.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Bumble Roofing Franchise Disclosure Document, failure to pay Royalty Fees, National Branding & Marketing Fees, and other amounts payable to the Franchisor when due constitutes a material breach of the agreement and grounds for termination. This means that if a franchisee does not make these payments on time, Bumble Roofing has the right to terminate the franchise agreement.
Additionally, if a Bumble Roofing franchisee has another franchise agreement with the company and defaults on one agreement, it constitutes a default under all agreements. If any Bumble Roofing franchise agreement ceases to be valid, binding, and in full force and effect for any reason, the Franchisor can terminate the other agreements.
It's important to note that the terms of termination in the agreement are subject to applicable state or federal laws, which will govern the franchisee's rights regarding termination or expiration of the agreement. Prospective franchisees should be aware of these conditions and ensure they understand their obligations to avoid potential termination of their franchise agreement.