Can Bumble Roofing require Royalty Fees to be paid more frequently than monthly?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
The Royalty Fees shall be payable to Franchisor on or before the 5th day of each month and shall be payable through the entire Initial Term of this Agreement and any Interim Period.
If Franchisee signs a Successor Franchise Agreement, Franchisee will be required to pay the Royalty Fees set forth therein.
Franchisor has the right to vary the Royalty Fees and how it is determined in any Successor Franchise Agreement Franchisee may sign.
Franchisee shall pay the Royalty Fees monthly or in such other frequency as Franchisor may in its sole discretion require upon written notice to Franchisee by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the franchisor has the right to change the frequency of royalty fee payments. Initially, royalty fees are paid monthly, but Bumble Roofing can, with written notice, require franchisees to pay these fees more frequently or on a different schedule.
This change in payment frequency is at Bumble Roofing's sole discretion, meaning they can implement this change for any reason they deem necessary. This gives Bumble Roofing flexibility in managing cash flow or responding to specific financial situations of the franchisee.
For a prospective franchisee, this means that while the initial agreement specifies monthly payments, they must be prepared for the possibility of more frequent payments if Bumble Roofing decides to implement such a change. It would be prudent to inquire about the conditions under which Bumble Roofing might exercise this option and how much advance notice would be given before implementing a change in payment frequency.