Can Bumble Roofing require franchisees to remit fees via electronic funds transfer?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall make funds available to Franchisor for withdrawal by electronic transfer no later than the due date for payment therefor.
If there are insufficient funds in Franchisee's account to collect amounts due by a transfer of funds on the due date, or if a withdrawal is otherwise rejected for any reason, Franchisee must pay Franchisor any fees and expenses Franchisor incurs, as well as Franchisor's then-current service charge to compensate Franchisor for its increased administrative and management costs in connection with such failed withdrawal.
If Franchisee has not timely reported the Gross Revenues to Franchisor for any reporting period, then Franchisor shall be authorized, at Franchisor's option, to debit Franchisee's account in an amount equal to the Royalty Fees and the National Branding & Marketing Fee.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, franchisees are required to make funds available for electronic transfer to Bumble Roofing no later than the due date for payment. This means Bumble Roofing mandates that franchisees set up a system for fees to be withdrawn electronically from their accounts.
If a franchisee's account has insufficient funds or a withdrawal is rejected for any reason, the franchisee is responsible for covering any fees or expenses Bumble Roofing incurs. Additionally, the franchisee must pay Bumble Roofing's service charge to compensate for the increased administrative and management costs associated with the failed withdrawal. This policy ensures that Bumble Roofing receives timely payments and is compensated for any complications arising from failed payment attempts.
Furthermore, if a Bumble Roofing franchisee fails to report gross revenues in a timely manner, Bumble Roofing has the option to debit the franchisee's account for an amount equal to the royalty fees and the National Branding & Marketing Fee. This clause underscores the importance of accurate and timely reporting of financial information to Bumble Roofing, as failure to do so can result in direct debits from the franchisee's account.