How much time does a Bumble Roofing franchisee have to pay the balance of the Note after acceleration?
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.
Source: Item 10 — FINANCING (FDD page 30)
What This Means (2025 FDD)
According to the 2025 Bumble Roofing FDD, if a franchisee's payment is late, Bumble Roofing has the option to declare the entire unpaid principal and interest balances immediately due and payable. The FDD excerpt does not specify a grace period or a timeframe for the franchisee to pay the accelerated balance of the note.
In the event of a late payment, Bumble Roofing can either demand immediate payment of the full outstanding amount or accept the late payment with an additional charge of 10% of the late payment amount. This late charge is intended to cover the additional expenses incurred by Bumble Roofing due to the delayed payment.
Prospective Bumble Roofing franchisees should inquire about the typical procedures Bumble Roofing follows when accelerating a note. Specifically, they should ask how much time is granted to the franchisee to pay the full balance after acceleration is declared. Understanding these terms is crucial for managing financial obligations and avoiding potential default scenarios.