What constitutes a material breach of the Bumble Roofing franchise agreement regarding 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)
According to the 2025 Bumble Roofing Franchise Disclosure Document, a material breach of the franchise agreement occurs if a franchisee fails to pay Royalty Fees, National Branding & Marketing Fees, and any other amounts owed to Bumble Roofing when they are due. This is a significant point for prospective franchisees to understand, as consistent and timely payments are critical to maintaining a good standing with the franchisor and avoiding potential termination of the agreement.
Bumble Roofing emphasizes that Section 6.7 of the agreement does not obligate them to accept late payments or extend credit to franchisees. This means that franchisees cannot rely on leniency or delayed payment arrangements. The franchisor retains the right to demand strict adherence to the payment schedule outlined in the agreement.
Furthermore, the FDD explicitly states that failure to pay all amounts when due provides grounds for termination of the agreement, regardless of the provisions in Section 6.7. This underscores the severity of payment defaults and the potential consequences for a Bumble Roofing franchisee's business operations. Franchisees should ensure they have sufficient financial resources and a robust system for managing payments to avoid breaching the agreement and risking termination.