When is the insurance reimbursement to Bumble Roofing due?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Insurance | Amount paid by us to secure insurance to fulfil your insurance obligations. | As incurred | You must reimburse us for the cost plus 10% plus interest for any amounts we pay on your behalf due to your failure to meet the insurance obligations as defined in your Franchise Agreement. This remedy is cumulative to all other remedies. |
| Interest | Lesser of 1 ½% per month or highest rate of interest allowed by law | As incurred | Begins to accrue after any payments are due and unpaid |
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, if Bumble Roofing secures insurance on behalf of a franchisee to fulfill their insurance obligations, the reimbursement is due as incurred. The franchisee must reimburse Bumble Roofing for the cost of the insurance plus 10% plus interest for any amounts Bumble Roofing pays on their behalf. This is due to the franchisee's failure to meet the insurance obligations as defined in the Franchise Agreement.
This means that if a Bumble Roofing franchisee fails to maintain the required insurance coverage, Bumble Roofing can step in to secure the necessary insurance and then bill the franchisee for the cost. The franchisee is not only responsible for the insurance premium but also an additional 10% of the cost, plus interest. The interest charged is the lesser of 1 1/2% per month or the highest rate of interest allowed by law, accruing after payments are due and unpaid.
This policy serves as a financial incentive for Bumble Roofing franchisees to maintain their insurance coverage. Failing to do so can result in significantly higher costs due to the additional fees and interest charged by the franchisor. This remedy is in addition to all other remedies Bumble Roofing has.
Franchisees should ensure they fully understand the insurance requirements outlined in the Franchise Agreement to avoid incurring these additional costs. Maintaining proper insurance is a standard requirement in franchising, protecting both the franchisee and franchisor from potential liabilities. Bumble Roofing's specific terms, including the 10% markup and potential interest, should be carefully considered by prospective franchisees.