What is the late interest charge a Bumble Roofing franchisee must pay on overdue amounts?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
correction entries to a designated checking or savings account for payments of fees and other amounts payable to Franchisor and any interest charged due thereon. Franchisee shall make funds available to Franchisor for withdrawal by electronic transfer no later than the due date for payment therefor. If there are insufficient funds in Franchisee's account to collect amounts due by a transfer of funds on the due date, or if a withdrawal is otherwise rejected for any reason, Franchisee must pay Franchisor any fees and expenses Franchisor incurs, as well as Franchisor's then-current service charge to compensate Franchisor for its increased administrative and management costs in connection with such failed withdrawal.
If Franchisee has not timely reported the Gross Revenues to Franchisor for any reporting period, then Franchisor shall be authorized, at Franchisor's option, to debit Franchisee's account in an amount equal to the Royalty Fees and the National Branding & Marketing Fee.
5.5 Franchisee must pay Franchisor the then-current technology fee as described in the Manual (the "Technology Fee"), for access to Franchisor's designated technology package, including certain software licenses, and Microsoft Exchange email addresses, and hosting fees. As of the date of this Agreement, the Technology Fee is equal to $345 per month. The technology package currently includes one license for certain software, and Franchisee must pay Franchisor or its designated third-party supplier the then-current per license monthly fee if Franc
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the specific late interest charge for overdue amounts owed to Bumble Roofing is not explicitly detailed in the provided excerpts. However, the document does state that if a franchisee's funds are insufficient for electronic transfer on the due date, or if a withdrawal is rejected, the franchisee must cover any fees and expenses incurred by Bumble Roofing. Additionally, the franchisee will be responsible for Bumble Roofing's then-current service charge to compensate for increased administrative and management costs related to the failed withdrawal.
While a concrete interest rate or fixed late fee is not specified, Bumble Roofing franchisees should be aware that late payments can lead to additional charges beyond the original amount due. These charges are intended to cover the administrative and management costs that Bumble Roofing incurs due to the failed or late payment. The FDD also mentions that the Technology Fee is $345 per month as of the agreement date, and this fee, along with others, could be subject to late payment charges if not paid on time.
To fully understand the financial implications of late payments, prospective Bumble Roofing franchisees should ask the franchisor for clarification on the exact late interest charge or fee structure applied to overdue amounts. Understanding these potential costs is crucial for managing cash flow and maintaining a positive financial standing with the franchisor. Franchisees should also inquire about the circumstances under which these fees may be waived or reduced.
It is also important to note that the franchise agreement includes provisions for prearranged payments via direct debit. Franchisees may want to consider this option to ensure timely payments and avoid potential late fees. The authorization agreement for prearranged payments is included as Attachment D to the Franchise Agreement.