conditional

Under what conditions can the Bumble Roofing franchise agreement be terminated during the initial term?

Bumble_Roofing Franchise · 2025 FDD

Answer from 2025 FDD Document

as a waiver by Franchisor of its rights in respect of the default giving rise to such payment and shall be without prejudice to Franchisor's right to terminate this Agreement in respect of such default.

  • 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.
  • 17.9 Should Franchisee, or any partnership or joint venture or corporation in which Franchisee has a controlling equity interest, be a franchisee pursuant to another BUMBLE ROOFING® franchise agreement with Franchisor, respecting another franchised Business using the Marks, a default under this Agreement shall constitute a default under such other BUMBLE ROOFING® franchise agreement and vice versa, with like remedies available to Franchisor. Should such other BUMBLE ROOFING® franchise agreement cease to be valid, binding and in full force and effect for any reason then Franchisor may, at its option terminate this Agreement and this Agreement shall be forthwith surrendered by Franchisee and terminated, and likewise should this Agreement cease to be valid binding and in full force and effect for any, reason, Franchisor may at its option terminate the other BUMBLE ROOFING® franchise agreement and the other BUMBLE ROOFING® franchise agreement shall be forthwith surrendered and terminated. In the event that there is more than one Franchisee, or if Franchisee should consist of more than one legal entity, Franchisee's liability hereunder shall be both joint and several. A breach hereof by one such entity or Franchisee shall be deemed to be a breach by both or all.
  • 17.10 Franchisee agrees that upon termination or expiration of this Agreement, it shall take the following action:
    • (a) Immediately discontinue the use of all Marks, signs, structures, forms of advertising, telephone listings, facsimile numbers, e-mail addresses, the Manual, and all materials, Products and Services of any kind which are identified or associated with the System and return all these materials and Products to Franchisor;

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2025 FDD)

According to Bumble Roofing's 2025 Franchise Disclosure Document, the franchise agreement, which has an initial term of seven years, can be terminated prior to its natural expiration date under certain conditions. If a franchisee defaults under another Bumble Roofing franchise agreement, Bumble Roofing may terminate the current agreement. Conversely, if the current agreement ceases to be valid, binding, and in full force, Bumble Roofing can terminate any other Bumble Roofing franchise agreement the franchisee may have.

Upon early termination of the agreement, the franchisee must pay Bumble Roofing an early termination fee within 30 days. This fee is calculated as 24 times the average monthly continuing royalty fees. The calculation uses the shorter of either the last 12 months of the business's active operations or the entire period the business has been open.

The FDD states that this early termination fee is not a penalty but a reasonable approximation of the damages Bumble Roofing will incur due to the premature termination. It also clarifies that this fee does not affect Bumble Roofing's right to any other payment, remedy, damages, or relief.

Additionally, the FDD notes that if any terms regarding termination or expiration are inconsistent with applicable state or federal law, those laws will govern the franchisee's rights. Bumble Roofing also has the right to be reimbursed for all attorneys' fees, costs, and expenses incurred to enforce the terms of the agreement or any obligation owed by the franchisee, including amounts for preparing default notices or defending claims brought against Bumble Roofing.

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.