How are payments credited when received for a Bumble Roofing franchise?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
All payments, as of the date they are received, will first be credited to any late charges due; the balance, if any, will then be credited to the outstanding interest balance; and the balance, if any, will then be credited to the outstanding principal balance.
Source: Item 23 — RECEIPT (FDD pages 53–188)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, all payments received are applied in a specific order. First, any outstanding late charges are covered. After that, any remaining balance is then credited towards the outstanding interest. Finally, if there is still a balance, it is credited towards the outstanding principal.
This order of payment allocation is important for Bumble Roofing franchisees to understand, as it affects how quickly the principal balance of any debt is reduced. By prioritizing late charges and interest, it may take longer to decrease the principal, which could impact the overall cost of the loan or financing.
It is a fairly standard practice in lending and franchise agreements to apply payments in this order. Franchisees should be aware of this structure and factor it into their financial planning and budgeting. Staying current on payments is crucial to avoid late charges and ensure that payments are applied efficiently to reduce the principal balance.