What is the Bumble Roofing franchisee's obligation regarding the Successor Franchise Fee?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
ccessor Franchise Fee (defined below) instead of the Initial Franchise Fee and the Successor Term will be no less than five years, as described above.
- (g) Franchisee pays Franchisor the successor franchise fee equal to the greater of $5,000 or 25% of the then existing Initial Franchise Fee as described in the Franchisors then existing Franchise Agreement ("Successor Franchise Fee"), which is due and payable to Franchisor at the time of signing the Successor Franchise Agreement;
- (h) Franchisee executes a general release of all claims Franchisee may have against Franchisor, its officers, directors, members, shareholders, agents, Affiliates, and employees, whether in their corporate and/or individual capacities. This release shall include all claims arising under any federal, state, or local law, rule, or ordinance arising out of or concerning this Agreement (to the fullest extent permitted by law) and shall be in a form satisfactory to Franchisor;
- (i) Franchisee has upgraded the computer system and vehicle used in operations of the Business to Franchisor's then-current standards;
- (j) Franchisee has provided Franchisor with proof of current licenses, insurance and any necessary permits; and
- (k) Franchisee has met any other conditions that Franchisor reasonably requires.
- 3.2 Franchisor reserves the right, but not the obligation, in Franchisor's sole discretion, to modify Franchisee's Territory at the time Franchisee executes a Successor Franchise Agreement to conform the size of Franchisee's Territory to Franchisor's then-current standards for protected territorial areas that are being granted to new BUMBLE ROOFING® franchisees, for example, if there has been an increase or decrease in the population or number of qualified households within Franchisee's original Territory, or if Franchisor uses different standards or calculations in determining the size of protected territories that are granted to new BUMBLE ROOFING® franchisees. If at the time Franchisee intends to execute a Successor
Franchise Agreement the size of Franchisee's original Territory encompasses more than one protected territory based upon Franchisor's then-current standards for determining protected territories for new BUMBLE ROOFING® franchisees, then Franchisor we may require Franchisee to execute multiple Successor Franchise Agreements if Franchisee wishes to continue operating within the entire original Territory.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, a franchisee who chooses to extend their franchise agreement for an additional term must pay a Successor Franchise Fee. This fee is the greater of $5,000 or 25% of the then-current Initial Franchise Fee. The Successor Franchise Fee is due when the franchisee signs the Successor Franchise Agreement.
To be eligible for a Successor Term, the Bumble Roofing franchisee must meet several conditions. They must remedy any breaches of the agreement, avoid committing multiple breaches in the 12 months before the Initial Term ends, provide written notice of their intent to extend the agreement, remain current on all payment obligations, and meet the then-current qualifications for new or renewing franchisees. Additionally, the franchisee must execute the Successor Franchise Agreement, which may contain different terms and conditions than the original agreement.
Bumble Roofing also reserves the right to modify the franchisee's territory when the Successor Franchise Agreement is executed. This modification ensures the territory size conforms to the franchisor's current standards for protected areas granted to new franchisees. This adjustment may occur due to changes in population or the number of qualified households within the original territory or if Bumble Roofing uses different standards for determining territory size. If the original territory encompasses more than one protected territory under the new standards, the franchisee may be required to execute multiple Successor Franchise Agreements to continue operating in the entire original area.