Under what circumstances is the Initial Franchise Fee for Bumble Roofing refundable?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
We will refund 50% of the Initial Franchise Fee within 30 days after notice of termination by us if you do not receive all applicable licenses and permits to operate your Business within 6 months after the mutual execution of the Franchise Agreement, provided that you have used all commercially reasonable efforts, as we determine in our sole discretion, to secure the applicable licenses and permits. We will notify you in writing if we decide to terminate your franchise and give you a partial refund of the Initial Franchise Fee. In addition, in limited circumstances, we may offer to finance up to 50% of your Initial Franchise Fee. There are no refunds of these fees under any other circumstances.
Source: Item 5 — INITIAL FEES (FDD pages 16–19)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the initial franchise fee of $49,500 is generally non-refundable, with one specific exception. Bumble Roofing will refund 50% of the initial franchise fee if the franchisee does not receive all applicable licenses and permits to operate their business within 6 months after signing the Franchise Agreement. This refund is contingent upon the franchisee demonstrating, to Bumble Roofing's satisfaction, that they used all commercially reasonable efforts to obtain the necessary licenses and permits. Bumble Roofing will provide written notice if they decide to terminate the franchise and issue the partial refund.
It is important to note that this is the only circumstance under which a refund of the initial franchise fee is explicitly mentioned. The FDD states that there are no refunds of these fees under any other circumstances. This means that if a franchisee decides not to proceed with the franchise for any other reason, or if Bumble Roofing terminates the agreement for a reason other than failure to obtain licenses and permits within the specified timeframe, the initial franchise fee will not be refunded.
Prospective franchisees should carefully consider the licensing and permitting requirements in their area and assess their ability to meet those requirements within six months. They should also document all efforts made to secure the necessary licenses and permits, as this documentation may be required to demonstrate "commercially reasonable efforts" in the event that they are unable to obtain the licenses and permits within the given timeframe. This refund policy is less generous than some franchise systems, where a portion of the initial fee may be refundable if the franchisee terminates during a specified 'cooling off' period.