What interest rate will be applied to the Bumble Roofing promissory note?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
umwater, WA 98501 360-902-8760 | | Wisconsin | Commissioner of Securities | Department of Financial Institutions Division of Securities 4822 Madison Yards Way, North Tower Madison, WI 53705 |
EXHIBIT H
BUMBLE ROOFING FRANCHISOR, LLC
PROMISSORY NOTE
[$AMOUNT] Date: [DATE]
FOR VALUE RECEIVED, the undersigned maker of this Note promises to pay to the order of [ENTITY NOTEHOLDER] located at 2426 Old Brick Road, Glen Allen, Virginia 23060, the principal sum of [AMOUNT] ($AMOUNT) in the currency of the United States of America together with interest from the date of this Note at the rate of [INTEREST RATE] (INTEREST RATE%) per annum.
Source: Item 23 — RECEIPT (FDD pages 53–188)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the promissory note includes an interest rate detailed within the document. Specifically, the note will accrue interest from the date of the note at a rate of INTEREST RATE% per annum. If a payment is late, and the holder demands payment in full, the unpaid balance will bear interest from the original due date of the delinquent payment at a default rate of 18% per year. However, if this rate exceeds the maximum permitted by law, the interest rate will be the highest rate permitted by law.
This means that a franchisee taking out a promissory note with Bumble Roofing will need to pay interest on the principal amount borrowed. The specific interest rate (INTEREST RATE%) will be determined at the time the note is issued. It is crucial for prospective franchisees to understand what the INTEREST RATE is before signing the promissory note, as this will directly impact the total amount repaid over the term of the note.
Furthermore, the 18% default rate is a significant increase over the standard interest rate. This provision serves as a penalty for late payments and underscores the importance of making timely payments to avoid triggering the higher interest rate. Franchisees should be aware of this clause and ensure they have sufficient financial planning to meet their payment obligations.
It is also important to note that the 18% default rate is subject to legal limitations. If the applicable law sets a maximum interest rate lower than 18%, the promissory note will adhere to that legal maximum. Franchisees should consult with legal and financial advisors to fully understand the implications of the promissory note and the potential for increased interest rates in the event of late payments.