factual

How soon after termination must a Bumble Roofing franchisee pay the early termination fee?

Bumble_Roofing Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 17.8 Upon termination of this Agreement prior to its natural expiration date in accordance with its terms, Franchisee shall pay to Franchisor within thirty (30) days of the date of the termination, as an early termination fee for the premature termination of this Agreement and not as a penalty, an amount equal to twenty-four (24) times the average monthly continuing royalty fees payable to Franchisor over (a) the last twelve (12) months of the Business's active operations, or (b) the entire period the Business has been open for business, whichever is the shorter period.

Franchisee acknowledges and agrees that such early termination fee is a reasonable approximation of the damages Franchisor will incur resulting from the premature termination of the Franchise Agreement as a result of breach by Franchisee, is appropriate because actual damages incurred by Franchisor will be difficult or impossible to ascertain, is not a penalty, and shall not affect Franchisor's right to, and is not in lieu of, any other payment or remedy, damages or relief to Franchisor.

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2025 FDD)

According to Bumble Roofing's 2025 Franchise Disclosure Document, if the franchise agreement is terminated before its natural expiration date, the franchisee must pay an early termination fee within thirty (30) days of the termination date.

The early termination fee is calculated as twenty-four (24) times the average monthly continuing royalty fees. This average is based on either the last twelve (12) months of the business's active operations or the entire period the business has been open, whichever is shorter.

Bumble Roofing specifies that this early termination fee is not a penalty but a reasonable approximation of the damages the franchisor will incur due to the premature termination. It's important to note that this fee does not affect Bumble Roofing's right to pursue any other payments, remedies, damages, or relief.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.