factual

What is the cure period for a Bumble Roofing franchisee's default on a lease agreement?

Bumble_Roofing Franchise · 2025 FDD

Answer from 2025 FDD Document

as a waiver by Franchisor of its rights in respect of the default giving rise to such payment and shall be without prejudice to Franchisor's right to terminate this Agreement in respect of such default.

  • 17.8 Upon termination of this Agreement prior to its natural expiration date in accordance with its terms, Franchisee shall pay to Franchisor within thirty (30) days of the date of the termination, as an early termination fee for the premature termination of this Agreement and not as a penalty, an amount equal to twenty-four (24) times the average monthly continuing royalty fees payable to Franchisor over (a) the last twelve (12) months of the Business's active operations, or (b) the entire period the Business has been open for business, whichever is the shorter period. Franchisee acknowledges and agrees that such early termination fee is a reasonable approximation of the damages Franchisor will incur resulting from the premature termination of the Franchise Agreement as a result of breach by Franchisee, is appropriate because actual damages incurred by Franchisor will be difficult or impossible to ascertain, is not a penalty, and shall not affect Franchisor's right to, and is not in lieu of, any other payment or remedy, damages or relief to Franchisor.
  • 17.9 Should Franchisee, or any partnership or joint venture or corporation in which Franchisee has a controlling equity interest, be a franchisee pursuant to another BUMBLE ROOFING® franchise agreement with Franchisor, respecting another franchised Business using the Marks, a default under this Agreement shall constitute a default under such other BUMBLE ROOFING® franchise agreement and vice versa, with like remedies available to Franchisor. Should such other BUMBLE ROOFING® franchise agreement cease to be valid, binding and in full force and effect for any reason then Franchisor may, at its option terminate this Agreement and this Agreement shall be forthwith surrendered by Franchisee and terminated, and likewise should this Agreement cease to be valid binding and in full force and effect for any, reason, Franchisor may at its option terminate the other BUMBLE ROOFING® franchise agreement and the other BUMBLE ROOFING® franchise agreement shall be forthwith surrendered and terminated. In the event that there is more than one Franchisee, or if Franchisee should consist of more than one legal entity, Franchisee's liability hereunder shall be both joint and several. A breach hereof by one such entity or Franchisee shall be deemed to be a breach by both or all.

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2025 FDD)

The 2025 Bumble Roofing Franchise Disclosure Document does not specify a cure period for a franchisee's default on a lease agreement. The document does outline general default provisions and termination conditions.

Section 17.8 discusses termination fees, stating that upon termination of the agreement before its natural expiration, the franchisee must pay an early termination fee within thirty days of termination. This fee is calculated as twenty-four times the average monthly continuing royalty fees over the shorter of the last twelve months of operation or the entire period the business has been open.

Section 17.9 indicates that a default under one Bumble Roofing franchise agreement constitutes a default under any other Bumble Roofing franchise agreement the franchisee may have. The document also states in Section 17.20 that if the termination terms in the agreement are inconsistent with state or federal law, those laws will govern the franchisee's rights regarding termination or expiration.

Because the FDD does not specify a cure period for lease defaults, prospective franchisees should ask Bumble Roofing about the specific terms and conditions related to lease agreements, including any cure periods allowed to remedy a default. This information is crucial for understanding the franchisee's obligations and potential liabilities.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.