Does the early termination fee affect Bumble Roofing's right to other remedies?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the early termination fee does not affect Bumble Roofing's right to other remedies. The franchisee acknowledges that the early termination fee is a reasonable approximation of the damages Bumble Roofing will incur due to the premature termination of the Franchise Agreement.
The FDD states that this fee is appropriate because actual damages incurred by Bumble Roofing will be difficult or impossible to ascertain. It clarifies that the early termination fee is not a penalty and, importantly, does not affect Bumble Roofing's right to, and is not in lieu of, any other payment or remedy, damages, or relief available to Bumble Roofing.
This means that even if a franchisee pays the early termination fee, Bumble Roofing retains the right to pursue additional legal or financial remedies if they have suffered further losses or damages as a result of the franchisee's breach of the agreement. This provision protects Bumble Roofing's interests beyond the basic compensation provided by the early termination fee.