Can the holder of the Bumble Roofing promissory note change the method of payment?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
All payments shall be made by preauthorized Automated Clearinghouse transactions ("ACH") or by such other reasonable method as holder directs at a bank specified by maker in writing to the holder as specified above.
Source: Item 23 — RECEIPT (FDD pages 53–188)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the method of payment for the promissory note can be directed by the holder. The standard payment method is preauthorized Automated Clearinghouse (ACH) transactions. However, the holder of the note has the authority to specify another reasonable method of payment, which the maker must follow. The maker must provide written notice of the bank they will use for payments.
This means that while ACH transactions are the default, Bumble Roofing retains the flexibility to request an alternative payment method from franchisees. This could be due to various reasons, such as changes in the franchisor's banking relationships or a need for more direct control over payments in certain situations.
For a prospective Bumble Roofing franchisee, this implies that they should be prepared to adapt to different payment methods if directed by the note holder. While the FDD specifies that the alternative method must be "reasonable," what constitutes reasonable is not defined. It would be prudent for a franchisee to discuss potential alternative payment methods with Bumble Roofing during their due diligence to understand the scope of this provision and ensure they are comfortable with the possibilities.