What late charge does Bumble Roofing assess for late payments on the Promissory Note?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
Any payment is late if not received by holder within 10 days after it is due.
If a payment is late, holder may, in its sole discretion elect to;
- A.
Declare the entire unpaid principal and interest balances immediately due and payable; or
- B.
Accept the late payment along with a late charge in the amount of 10% of the amount of the late payment.
The late charge will be for the purpose of compensating holder for additional expenses which it is recognized that holder will incur as a result of the late payment.
All payments, as of the date they are received, will first be credited to any late charges due; the balance, if any, will then be credited to the outstanding interest balance; and the balance, if any, will then be credited to the outstanding principal balance.
Source: Item 10 — FINANCING (FDD page 30)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, if a franchisee's payment is received more than 10 days after its due date, Bumble Roofing has the option to impose a late charge. This late charge will be 10% of the overdue payment amount.
This late charge is intended to cover the additional expenses Bumble Roofing anticipates incurring due to the late payment. It's important to note that all payments received are first applied to any outstanding late charges, then to any interest owed, and finally to the outstanding principal balance.
Bumble Roofing also has the option to declare the entire unpaid principal and interest immediately due and payable if a payment is late. This could have significant financial implications for the franchisee, potentially leading to acceleration of the debt and further legal action if the full amount cannot be paid.