Can Bumble Roofing vary the Royalty Fees in a Successor Franchise Agreement?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) Franchisee executes a successor franchise agreement ("Successor Franchise Agreement") and all other agreements in the form then being used by Franchisor in granting new franchises, which may contain materially different terms and conditions than this Agreement, provided that Franchisee will pay Franchisor the Successor Franchise Fee (defined below) instead of the Initial Franchise Fee and the Successor Term will be no less than five years, as described above.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the terms and conditions of the Successor Franchise Agreement may differ materially from the original agreement. Specifically, section 3.1(f) states that the new agreement may contain materially different terms and conditions than the original agreement. However, the franchisee will pay the Successor Franchise Fee instead of the Initial Franchise Fee, and the Successor Term will be no less than five years.
This means that Bumble Roofing has the right to change various aspects of the franchise agreement when a franchisee seeks to renew their term. These changes could include modifications to royalty fees, marketing contributions, operational standards, and other key terms. While the franchisee is guaranteed a Successor Term of no less than five years, the financial implications of these new terms could significantly impact the franchisee's profitability and business operations.
Prospective franchisees should carefully consider this aspect of the franchise agreement and discuss with Bumble Roofing what types of changes they might expect in a successor agreement. Understanding the potential for altered terms is crucial for long-term financial planning and assessing the overall viability of the Bumble Roofing franchise.