Does the Bumble Roofing Franchise Agreement guarantee the same royalty and advertising contributions upon renewal?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement or Other Agreement | Summary |
|---|---|---|
| a. Length of the Franchise Term | Section 3 of Franchise Agreement | Franchise Agreement: 7 years. |
| b. Renewal or extension of the term | Section 3 of Franchise Agreement | If you wish to do so, and you satisfy all of the preconditions to obtaining a Successor Franchise, we will offer you the right to obtain an additional term of for a period of time equal to our then-current initial term (but no less than 5 years). |
| c. Requirements for franchisee to renew or extend | Section 3 of Franchise Agreement | Renewal means obtaining the right to operate the Business for another term. Requirements to renew include: sign our then-current successor franchise agreement ("Successor Franchise Agreement") for the Successor Term, and this new Franchise Agreement may have materially different terms and conditions (including, e.g. higher royalty and advertising contributions) from the Franchise Agreement that covered your original term, be current in all payments, not have committed 2 breaches in the 12 months before the end of the term, sign release, pay renewal fee, meet our qualifications for new and renewing franchisees, provide n |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–45)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the franchise agreement does not guarantee the same royalty and advertising contributions upon renewal. The document states that to renew the franchise, a franchisee must sign the then-current successor franchise agreement. This new agreement may contain materially different terms and conditions, including potentially higher royalty and advertising contributions than the original agreement.
This means that when a Bumble Roofing franchisee's initial term is up, they do not have a guaranteed right to continue operating under the same financial terms. The franchisor has the right to increase royalty fees, advertising contributions, or other fees as part of the renewal agreement. This is a significant risk for franchisees, as increased costs could impact their profitability and ability to continue operating successfully.
It is common in franchising for renewal agreements to reflect the then-current market conditions and the franchisor's evolving business model. However, prospective Bumble Roofing franchisees should carefully consider the potential for increased costs upon renewal and factor this into their financial projections. They should also seek legal and financial advice to fully understand the implications of the renewal terms before signing the initial franchise agreement. Understanding the potential changes in financial obligations is crucial for long-term planning and success as a Bumble Roofing franchisee.