Is the Initial Franchise Fee for a Bumble Roofing franchise refundable, and if so, under what circumstances?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.1 Franchisee shall pay the sum described on Attachment A plus, if due and payable, all applicable federal, state or municipal taxes, as a non-recurring initial franchise fee ("Initial Franchise Fee") to Franchisor upon the execution of this Agreement. The Initial Franchise Fee shall be paid by means of cashier's check, money order or wire transfer. The Initial Franchise Fee shall be deemed to have been fully earned by Franchisor when paid. The Initial Franchise Fee is non-refundable once paid except as provided for in Section 5.2**.**
- 5.2 The Initial Franchise Fee will be non-refundable unless Franchisor terminates the Agreement because Franchisee failed, after diligent pursuit using all commercially reasonable efforts as determined in Franchisor's sole discretion, to obtain the applicable permits and licenses required by the state and local government applicable to its Territory within 6 months. Franchisor shall notify Franchisee in writing that it is exercising its right to terminate the Agreement pursuant to this Section 5.2, in which case 50% of the Initial Franchise Fee shall be refunded to Franchisee within 30 days of Franchisor's notice of termination to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the initial franchise fee is generally non-refundable. Once paid, Bumble Roofing considers the fee fully earned. However, there is one specific circumstance under which a portion of the fee may be refunded.
If a franchisee diligently pursues all commercially reasonable efforts to obtain the necessary state and local permits and licenses for their territory but fails to do so within six months, Bumble Roofing has the right to terminate the Franchise Agreement. In this specific case, the franchisee will receive a refund of 50% of the initial franchise fee. This refund will be issued within 30 days of Bumble Roofing providing written notice of termination to the franchisee.
It is important for prospective Bumble Roofing franchisees to understand that this is the only scenario in which a refund of the initial franchise fee is mentioned. Franchisees should carefully consider the potential challenges in obtaining permits and licenses in their desired territory and factor that risk into their decision. They should also be aware that Bumble Roofing has sole discretion in determining whether the franchisee has made all commercially reasonable efforts to obtain the required permits and licenses.