What is the minimum amount of the successor franchise fee for Bumble Roofing?

According to Bumble Roofing's 2025 Franchise Disclosure Document, a franchisee who chooses to extend their franchise agreement for an additional term must pay a successor franchise fee. This fee is the greater of $5,000 or 25% of the then-current initial franchise fee. This successor franchise fee is due when the franchisee signs the Successor Franchise Agreement.

In practical terms, this means that the minimum successor franchise fee a franchisee would pay to Bumble Roofing is $5,000. However, if 25% of the initial franchise fee at the time of renewal is higher than $5,000, the franchisee will be required to pay the higher amount. For example, if the initial franchise fee at the time of renewal is $25,000, then 25% of that amount would be $6,250, which would be the successor franchise fee.

It is important for prospective franchisees to understand that the successor franchise fee is in addition to any other requirements for renewal, such as upgrading computer systems or vehicles to meet current standards. Franchisees should also be aware that the terms and conditions of the successor franchise agreement may be materially different from the original agreement.

This type of fee structure is fairly common in franchising, as it allows the franchisor to recoup some of the costs associated with granting a new franchise term and to ensure that the franchisee is committed to the brand. Franchisees should carefully consider the cost of the successor franchise fee and other renewal requirements when deciding whether to extend their franchise agreement.