What interest rate applies to the outstanding balance after a default for a Bumble Roofing franchise?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event a default exists after the 10-day notice period has expired, maker promises and agrees:
- A.
That the entire outstanding principal and interest balances, including late charges, will bear interest from the original due date of the delinquent payment at the rate of 18% (default rate) per year (or if this rate exceeds the maximum permitted by law, then the interest rate will be the highest rate permitted by law); and
- B.
To pay holders actual attorneys' fees and costs incurred in collection efforts as a result of the default.
Source: Item 23 — RECEIPT (FDD pages 53–188)
What This Means (2025 FDD)
According to the 2025 Bumble Roofing FDD, if a franchisee defaults on their payment and fails to make it within a 10-day notice period, the outstanding principal and interest balances, including late charges, will incur interest 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 default interest rate applies from the original due date of the delinquent payment. This means that the increased interest applies retroactively to the date the payment was initially missed, not just from the end of the 10-day notice period.
In addition to the increased interest rate, Bumble Roofing franchisees are also responsible for paying the franchisor's actual attorneys' fees and costs incurred in collection efforts resulting from the default. This could significantly increase the financial burden on a franchisee already facing financial difficulties.