Are Bumble Roofing royalty fees payable during any interim period?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.4 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.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Bumble Roofing Franchise Disclosure Document, royalty fees are payable during any interim period. The franchise agreement lasts for an initial term of seven years, but can be terminated earlier under certain conditions.
Specifically, Bumble Roofing franchisees are obligated to pay royalty fees throughout the entire initial term of the agreement, as well as during any interim period. If a franchisee signs a Successor Franchise Agreement, the royalty fees will be those outlined in the new agreement, which Bumble Roofing has the right to change.
This means that even if the franchise agreement is in a state of transition or extension, the franchisee must continue to pay royalty fees. The fees are typically due on the 5th day of each month, accompanied by a statement of the previous month's gross revenues. Failure to provide this statement is considered a material breach of the agreement.