What rights does Bumble Roofing have regarding set-offs if it elects to purchase the franchisee's business?
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, if Bumble Roofing chooses to exercise its option to purchase the franchisee's business, it has the right to offset certain amounts against the purchase price. Specifically, Bumble Roofing can deduct all amounts owed by the franchisee under the Franchise Agreement or any other agreements between the franchisee and Bumble Roofing.
Additionally, Bumble Roofing can deduct any commissions or fees payable to any broker, agent, or other intermediary involved in the transaction. The costs associated with any appraisal conducted to determine the fair market value of the business can also be deducted from the purchase price.
This set-off provision is important for prospective franchisees to understand, as it could significantly reduce the amount they receive if Bumble Roofing decides to purchase their business. Franchisees should be aware of all potential deductions and ensure they have a clear understanding of their financial obligations to Bumble Roofing.