Under what conditions can Bumble Roofing require a franchisee to remit Royalty Fees weekly?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.12 If Franchisee remits the Royalty Fees or any other sums due to Franchisor under this Agreement with a check returned for non-sufficient funds more than one time in any calendar year, in addition to all other remedies which may be available, Franchisor shall have the right to require that Royalty Fees payments and any other sums due to Franchisor under this Agreement be made by certified or cashier's checks. If Franchisee fails to remit the Royalty Fees or any other sums due to Franchisor under this Agreement by the due date 2 times during the Initial Term or any Interim Period, in addition to all other remedies which may be available, Franchisor reserves the right to require, in its sole discretion, that Franchisee remit the Royalty Fees or any other sums due to Franchisor under this Agreement weekly.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, Bumble Roofing has the right to require a franchisee to remit Royalty Fees weekly if the franchisee fails to remit Royalty Fees or any other sums due to Bumble Roofing by the due date two times during the Initial Term or any Interim Period. This is in addition to all other remedies that may be available to Bumble Roofing.
This condition is significant for prospective franchisees as it highlights the importance of timely payments. Failing to meet payment obligations can lead to more frequent payment schedules, adding administrative burden and potentially indicating financial instability. The "Initial Term" is defined as the seven-year period from when the Franchise Agreement is executed.
Franchisees should be aware of this clause and ensure they have sufficient financial planning and management in place to avoid late payments. Maintaining a good payment record is crucial to avoid additional scrutiny and potential restrictions from Bumble Roofing. This requirement is within Bumble Roofing's sole discretion, meaning they are not obligated to impose weekly payments, but have the right to do so.