Where in the Bumble Roofing franchise agreement can I find information regarding default and termination?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
interest after the due date at the rate of 18% per annum or the highest rate permitted by law, whichever is lower, both before and after default, with interest on overdue interest at the aforesaid rate. The acceptance of any interest payment shall not be construed 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.
- 17.10 Franchisee agrees that upon termination or expiration of this Agreement, it shall take the following action:
- (a) Immediately discontinue the use of all Marks, signs, structures, forms of advertising, telephone listings, facsimile numbers, e-mail addresses, the Manual, and all materials, Products and Services of any kind which are identified or associated with the System and return all these materials and Products to Franchisor;
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, information regarding default and termination can be found in Section 17 of the franchise agreement. Specifically, section 17.8 outlines the early termination fee a franchisee must pay if the agreement is terminated before its natural expiration date. This fee is calculated as 24 times the average monthly continuing royalty fees, based on either the last 12 months of operation or the entire period the business has been open, whichever is shorter.
The Bumble Roofing agreement emphasizes that this early termination fee is not a penalty but a reasonable approximation of the damages the franchisor will incur due to the premature termination. It also clarifies that the franchisor retains the right to pursue other remedies or damages. Section 17.9 states that a default under one Bumble Roofing franchise agreement constitutes a default under any other Bumble Roofing franchise agreement the franchisee may have, and vice versa, allowing the franchisor to terminate all agreements.
Additionally, section 17.20 acknowledges that if any terms regarding termination or expiration are inconsistent with state or federal law, those laws will govern the franchisee's rights. Section 17.21 stipulates that the franchisee must reimburse Bumble Roofing for all attorneys' fees and costs incurred to enforce the agreement or defend against claims brought by the franchisee, including costs related to default notices. These sections collectively provide a framework for understanding the circumstances, processes, and financial implications related to default and termination within the Bumble Roofing franchise system.