What happens if a Bumble Roofing franchisee fails to have sufficient funds for an electronic transfer?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall make funds available to Franchisor for withdrawal by electronic transfer no later than the due date for payment therefor.
If there are insufficient funds in Franchisee's account to collect amounts due by a transfer of funds on the due date, or if a withdrawal is otherwise rejected for any reason, Franchisee must pay Franchisor any fees and expenses Franchisor incurs, as well as Franchisor's then-current service charge to compensate Franchisor for its increased administrative and management costs in connection with such failed withdrawal.
If Franchisee has not timely reported the Gross Revenues to Franchisor for any reporting period, then Franchisor shall be authorized, at Franchisor's option, to debit Franchisee's account in an amount equal to the Royalty Fees and the National Branding & Marketing Fee.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, franchisees are required to ensure funds are available for electronic transfers to the franchisor by the payment due date. If a Bumble Roofing franchisee's account has insufficient funds for the electronic transfer on the due date, or if the withdrawal is rejected for any other reason, the franchisee is responsible for covering any fees and expenses incurred by Bumble Roofing.
In addition to covering Bumble Roofing's fees and expenses, the franchisee must also pay Bumble Roofing's then-current service charge. This service charge is intended to compensate Bumble Roofing for the increased administrative and management costs associated with the failed withdrawal.
Furthermore, if a Bumble Roofing franchisee fails to report gross revenues to Bumble Roofing in a timely manner for any reporting period, Bumble Roofing has the option to debit the franchisee's account for an amount equal to the royalty fees and the national branding and marketing fee. This highlights the importance of maintaining sufficient funds and adhering to reporting deadlines to avoid additional charges and potential debits from the franchisee's account.