What constitutes a material breach of the Bumble Roofing Franchise Agreement regarding Royalty Fees?
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 Bumble Roofing's 2025 Franchise Disclosure Document, a material breach of the Franchise Agreement occurs if the 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 payment of these fees is essential for maintaining a good standing with the franchisor and avoiding potential termination of the agreement.
Bumble Roofing emphasizes that this requirement does not obligate them to accept late payments or extend credit to franchisees. The franchisor retains the right to terminate the agreement if these payments are not made on time, regardless of the franchisee's acknowledgment of this section. This underscores the importance of franchisees managing their finances effectively and ensuring they have sufficient funds to meet their financial obligations to Bumble Roofing.
This provision is standard in most franchise agreements, as timely payment of fees is crucial for the franchisor's revenue stream and ability to support the franchise system. Franchisees should carefully review their financial projections and business plans to ensure they can comfortably afford these ongoing fees. Failure to do so could lead to a material breach of the agreement and potential loss of the franchise.