What is the minimum length of the Successor Term for a Bumble Roofing franchise?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
l begin on the date this Agreement is executed by Franchisor, subject, however, to termination in accordance with the provisions of this Agreement. When the Initial Term expires Franchisee shall have the option to extend its rights to operate the Roofing Business for one additional term equal to the length of Franchisor's then-current initial term as described in its then-current BUMBLE ROOFING® franchise agreement ("Successor Term"), provided Franchisor determines in its sole and absolute discretion that Franchisee has met all of the following requirements:
- (a) Franchisee has not failed to remedy any breach of this Agreement specified by Franchisor in a written notice to Franchisee as per Sections 17.1 or 17.2;
- (b) Franchisee has not committed and received notice of two or more breaches of this Agreement in the 12 months prior to the end of the current Initial Term, even if such breaches were timely remedied;
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the minimum length of the Successor Term is five years. The initial term for a Bumble Roofing franchise is seven years. Upon expiration of the initial term, a franchisee has the option to extend their rights to operate the roofing business for an additional term, known as the Successor Term.
However, this option is contingent upon Bumble Roofing determining, at its sole discretion, that the franchisee has met specific requirements. These requirements include rectifying any breaches of the agreement, avoiding multiple breaches in the 12 months prior to the end of the initial term, providing timely written notice of intent to extend, remaining current with all payment obligations, meeting the franchisor's qualifications for new or renewing franchisees, and executing a successor franchise agreement.
This Successor Franchise Agreement may contain terms and conditions that differ materially from the original agreement. The franchisee must also pay a Successor Franchise Fee, which is defined in the FDD as the greater of $5,000 or 25% of the then existing Initial Franchise Fee. Despite potentially different terms in the new agreement, the Successor Term will be no less than five years.