What happens if a Bumble Roofing franchisee does not submit their financial reports on time?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
Each failure to pay Royalty Fees, National Branding & Marketing Fees, and other amounts payable to Franchisor when due shall constitute a material breach of this Agreement.
Franchisee acknowledges that this Section 6.7 shall not constitute Franchisor's agreement to accept such payments after same are due or a commitment by Franchisor to extend credit to, or otherwise finance Franchisee's operation of the Roofing Business.
Further, Franchisee acknowledges that failure to pay all such amounts when due shall, notwithstanding the provisions of this Section 6.7, constitute grounds for termination of this Agreement, as provided in this Agreement.
6.8 Any report of Franchisor's auditor rendered from time to time pursuant to this Section 6, shall be final and binding upon all of the parties hereto.
6.9 Franchisee hereby authorizes Franchisor to make reasonable inquiries of Franchisee's bank, suppliers and trade creditors concerning the Business and hereby directs such persons and companies to provide to Franchisor such information and copies of documents pertaining to the Business as Franchisor may request.
6.10 Franchisee acknowledges and agrees that Franchisor owns all business records and databases, whether in print, electronic or other form, related to the Business ("Business Records") that in
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Bumble Roofing Franchise Disclosure Document, failing to pay Royalty Fees, National Branding & Marketing Fees, and other amounts when due constitutes a material breach of the Franchise Agreement.
Bumble Roofing emphasizes that Section 6.7 of the agreement does not obligate them to accept late payments or extend credit to franchisees. The document explicitly states that failure to pay all amounts when due can be grounds for termination of the agreement, regardless of Section 6.7.
Bumble Roofing retains the right to audit franchisee reports, and the auditor's report will be final and binding. Additionally, Bumble Roofing is authorized to contact a franchisee's bank, suppliers, and trade creditors to obtain information and documents pertaining to the business. Bumble Roofing also owns all business records and databases related to the business.