How must the Bumble Roofing Successor Franchise Fee be paid?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Successor Addendum ("Successor Addendum") to the Successor Franchise Agreement is made and entered into this day of, 20, by and between BUMBLE ROOFING FRANCHISOR, LLC ("Franchisor") and ("Franchisee"). | |||||||
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| BACKGROUND | |||||||
| 1. 20 ("Franchise | Franchisor and Franchisee entered into a Franchise Agreement dated, Agreement") pursuant to which Franchisee operates a BUMBLE ROOFING® Roofing Business located in ("Franchised Business"). | ||||||
| 2. | The Franchise Agreement will expire by its own terms on, 20 | ||||||
| 3. | Addendum into the Successor Franchise Agreement. | AGREEMENT | Franchisor and Franchisee intend to enter into a successor franchise agreement ("Successor Franchise Agreement") and desire to amend its terms by incorporating the terms of this Successor | ||||
| 1. | Franchisor, however, reserves the right to offer Franchisee additional successor terms. | NO ADDITIONAL SUCCESSOR TERMS. Franchisor and Franchisee acknowledge and agree that, notwithstanding Section 3 of the Successor Franchise Agreement, Franchisee has no rights to any additional successor terms upon the expiration or termination of the Successor Franchise Agreement. | |||||
| 2. | A. | FRANCHISE FEE. Section 5 is amended as follows: Section 5.1 is deleted in its entirety and replaced with the following: | |||||
| "5.1 The | Franchisee Dollars ($) plus, if due and payable, all applicable federal, state or municipal taxes, as a non-recurring and non-refundable (subject to Section 5.2) successor franchise fee ("Successor Franchise Fee") per Territory to the Franchisor upon the execution of this Agreement. |
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the Successor Franchise Fee must be paid via certified funds on a bank check. This fee is non-recurring and non-refundable, subject to specific conditions outlined in Section 5.2 of the agreement, and covers each territory the franchisee is renewing.
The Successor Franchise Fee compensates Bumble Roofing for granting the renewal and is considered fully earned upon payment. This means that once the fee is paid, Bumble Roofing has fulfilled its obligation, regardless of the franchisee's future success or satisfaction.
This payment method ensures that Bumble Roofing receives guaranteed funds, reducing the risk of non-payment or bounced checks. For a prospective franchisee, this means needing to have the full Successor Franchise Fee available in certified funds at the time of signing the Successor Franchise Agreement. Franchisees should carefully consider this requirement and ensure they have the necessary funds readily accessible to avoid delays or potential breaches of the agreement.