Can the new Bumble Roofing Franchise Agreement for the Successor Term be materially different?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement or Other Agreement | Summary |
|---|---|---|
| a. Length of the Franchise Term | Section 3 of Franchise Agreement | Franchise Agreement: 7 years. |
| b. Renewal or extension of the term | Section 3 of Franchise Agreement | If you wish to do so, and you satisfy all of the preconditions to obtaining a Successor Franchise, we will offer you the right to obtain an additional term of for a period of time equal to our then-current initial term (but no less than 5 years). |
| c. Requirements for franchisee to renew or extend | Section 3 of Franchise Agreement | Renewal means obtaining the right to operate the Business for another term. Requirements to renew include: sign our then-current successor franchise agreement ("Successor Franchise Agreement") for the Successor Term, and this new Franchise Agreement may have materially different terms and conditions (including, e.g. higher royalty and advertising contributions) from the Franchise Agreement that covered your original term, be current in all payments, not have committed 2 breaches in the 12 months before the end of the term, sign release, pay renewal fee, meet our qualifications for new and renewing franchisees, provide notice, upgrade the computer system and vehicle, and provide proof of current licenses, insurance and permit. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–45)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the terms and conditions of the Successor Franchise Agreement can be materially different from the original agreement. Specifically, to renew the franchise, a franchisee must sign Bumble Roofing's then-current successor franchise agreement for the Successor Term. This new agreement may include materially different terms and conditions, such as higher royalty and advertising contributions, compared to the original Franchise Agreement.
To renew their franchise with Bumble Roofing, franchisees must meet several requirements. These include being current on all payments, not having committed two breaches of the agreement in the 12 months before the end of the term, signing a release, paying a renewal fee, meeting Bumble Roofing's qualifications for new and renewing franchisees, providing notice of their intent to renew, upgrading the computer system and vehicle, and providing proof of current licenses, insurance, and permits.
This means that while a franchisee may have the option to renew, the financial implications and operational requirements could change significantly. The increased royalty and advertising contributions could impact profitability, and the required upgrades and compliance measures may necessitate additional investment. Prospective franchisees should carefully consider these potential changes and their financial capacity to meet the new obligations when evaluating the renewal terms.