Under what conditions can [ENTITY NOTEHOLDER] terminate the Franchise Agreement(s) related to the Bumble Roofing promissory note?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event a default exists after the 10-day notice period as provided above in paragraph 6, [ENTITY NOTEHOLDER] may in addition elect to terminate and cancel the Franchise Agreement(s) between [ENTITY NOTEHOLDER] and maker described in paragraph 8 below in accordance with the provisions of that agreement(s).
Source: Item 23 — RECEIPT (FDD pages 53–188)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, [ENTITY NOTEHOLDER] can terminate the Franchise Agreement if the franchisee defaults on the terms of the promissory note. Specifically, a default after a 10-day notice period allows [ENTITY NOTEHOLDER] to terminate the Franchise Agreement(s) as per the agreement's provisions.
If a payment is late, Bumble Roofing has the option to declare the entire unpaid balance immediately due or accept the late payment with a charge of 10% of the late payment amount. If Bumble Roofing demands full payment due to a late payment, they must first provide written notice to the franchisee, allowing 10 days for the payment to be made.
If the franchisee fails to make the payment within this 10-day notice period, a default is considered to exist. In the event of a default, the outstanding balance, including late charges, will accrue interest at a default rate of 18% per year, and the franchisee is responsible for Bumble Roofing's attorney's fees and costs incurred during collection efforts. After this 10-day notice period, Bumble Roofing can then elect to terminate the Franchise Agreement(s).