Does the Bumble Roofing Franchisee Authorization Agreement for Prearranged Payments state that the franchisee's rights to correct erroneous debit entries are in addition to any rights they may have under federal and state banking laws?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
If an erroneous debit entry is initiated to Depositor's account, Depositor shall have the right to have the amount of such entry credited to such account by Depository, if (a) within fifteen (15) calendar days following the date on which Depository sent to Depositor a statement of account or a written notice pertaining to such entry or (b) forty five (45) days after posting, whichever occurs first, Depositor shall have sent to Depository a written notice identifying such entry, stating that such entry was in error and requesting Depository to credit the amount thereof to such account. These rights are in addition to any rights Depositor may have under federal and DEPOSITORY - FRANCHISOR DEPOSITOR - FRANCHISEE
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the Authorization Agreement for Prearranged Payments (Direct Debits) specifies that a franchisee (referred to as "Depositor") has the right to have the amount of an erroneous debit entry credited back to their account. To exercise this right, the franchisee must provide written notice to the Depository (bank) identifying the erroneous entry and requesting a credit. This notice must be sent within fifteen calendar days of receiving a statement or written notice about the entry, or within forty-five days after the entry was posted, whichever comes first.
Importantly, the agreement explicitly states that these rights to correct erroneous debit entries are in addition to any other rights the franchisee may have under federal and state banking laws. This means that the franchisee's ability to dispute and correct errors is protected both by the terms of the franchise agreement and by the broader legal framework governing banking transactions.
This provision offers a degree of protection to Bumble Roofing franchisees, ensuring they have recourse if incorrect debit entries are made. It aligns with standard practices in franchise systems where franchisees often authorize direct payments for royalties, marketing fees, or other ongoing obligations. Franchisees should be aware of the timelines for reporting errors to ensure they can take timely action to correct any discrepancies.