What rights does the Bumble Roofing Franchisor have regarding set-offs against the purchase price?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.4 If Franchisor elects to exercise any option to purchase provided in this Section 16 Franchisor will have the right to set off all amounts due from Franchisee under this Agreement or any other agreements between the parties, any commissions or fees payable to any broker, agent or other intermediary and the cost of the appraisal, if any, against any payment.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the franchisor has specific rights regarding set-offs against the purchase price of a franchisee's business. If Bumble Roofing elects to exercise its option to purchase the franchise, it has the right to deduct certain amounts from the payment owed to the franchisee.
These deductions can include all amounts the franchisee owes to Bumble Roofing under the Franchise Agreement or any other agreements between them. Additionally, Bumble Roofing can deduct any commissions or fees payable to brokers, agents, or other intermediaries involved in the sale. The cost of any appraisal conducted to determine the fair market value of the business can also be deducted from the payment to the franchisee.
This provision means that a Bumble Roofing franchisee may receive a lower purchase price for their business if they have outstanding debts or obligations to the franchisor. It is important for prospective franchisees to understand these potential deductions and factor them into their financial planning. Franchisees should maintain good financial standing with Bumble Roofing to minimize the impact of these set-offs if the franchisor chooses to purchase the franchise.