Under what conditions can the Bumble Roofing Franchise Agreement be terminated if the Note is defaulted?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
rest from the original due date of the delinquent payment at the rate of 18% (default rate) per year (or if this rate exceeds the maximum permitted by law, then the interest rate will be the highest rate permitted by law); and
B. To pay holders actual attorneys' fees and costs incurred in collection efforts as a result of the default.
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- 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).
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Source: Item 23 — RECEIPT (FDD pages 53–188)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the franchise agreement can be terminated if a franchisee defaults on their promissory note. Specifically, if a default exists after a 10-day notice period, Bumble Roofing may elect to terminate and cancel the Franchise Agreement.
Prior to termination, Bumble Roofing must provide the franchisee with written notice of its election to demand full payment within 10 days. If the franchisee fails to make the payment within this period and a default still exists, Bumble Roofing has the right to terminate the franchise agreement.
Additionally, the document states that a default under the terms of the promissory note will be sufficient grounds for termination or cancellation of the Franchise Agreement in accordance with the terms of the Franchise Agreement. This means that the specific conditions and procedures for termination would also be governed by the broader terms outlined in the Franchise Agreement itself.