What interest rate will be applied to the promissory note for a Bumble Roofing franchise?
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.
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- On the [PAYMENT DATE], and on the [DAY/DATE OF MONTH] of each and every [WEEK/MONTH] thereafter, the sum of [$AMOUNT] will be due and payable in full.
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. The specific interest rate from the date of the note is to be at the 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 exact interest rate will be specified in the promissory note. It is important to note that the interest rate could increase to 18% per year if a payment is late and results in a default, although this is capped at the maximum legal rate if applicable law dictates a lower maximum.
Prospective franchisees should carefully review the terms of the promissory note, paying close attention to the stated interest rate, the conditions under which the default rate may be applied, and any applicable state laws that may limit the interest rate. Understanding these terms is crucial for managing the financial obligations associated with the franchise.