When is the Bumble Roofing indemnification fee due?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Indemnification | Actual costs | As incurred | You must reimburse us if we are held liable for claims arising from your Roofing Business |
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the indemnification fee is due 'as incurred.' This means a Bumble Roofing franchisee is responsible for reimbursing Bumble Roofing for actual costs if Bumble Roofing is held liable for claims arising from the franchisee's roofing business.
In practical terms, if a customer sues Bumble Roofing due to faulty workmanship or an accident caused by the franchisee's operations, and Bumble Roofing is found liable, the franchisee must cover Bumble Roofing's costs. These costs are not a fixed amount but depend on the specifics of each claim.
This arrangement protects Bumble Roofing from financial losses resulting from the actions of its franchisees. It is a fairly standard practice in franchising, as franchisors need to ensure consistent quality and protect their brand reputation. Franchisees should maintain adequate insurance coverage to mitigate this risk.