Bumble_Roofing 2025 Franchise FAQ - FDD Ninja

Question 1

What was the average revenue per roofing project for Bumble Roofing, as reported for the period of October 1, 2023, to September 30, 2024?

Accepted Answer

during the reporting period of October 1, 2023 to September 30, 2024.

| Description                      | Metric    |
|----------------------------------|-----------|
| Total number of roofing projects | 195       |
|                                  |           |
| Average Revenue per project      | \$ 25,745 |
| Number or projects above average | 52        |
| % of projects above average      | 26.7%     |
|                                  |           |
| Median Revenue per project       | \$ 21,999 |
|                                  |           |
| Max

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 45–50)

Question 2

What is the total estimated low and high range for the initial investment to start a Bumble Roofing franchise?

Accepted Answer

IMATED INITIAL INVESTMENT

| Type of Expenditure (1)                                          | Estimated Low/High Amount | Method of Payment | When Due                             | To Whom Payment is Made                      |
|------------------------------------------------------------------|------------------------------|----------------------|--------------------------------------|----------------------------------------------|
| Initial Franchise Fee (2)                                        | \$49,500                     | Lump sum             | Upon signing the Franchise Agreement | Franchisor                                   |
| Travel and living expenses while training (3)                    | \$2,000/\$5,000              | As incurred          | As incurred during training          | Airlines, hotels, restaurants                |
| Equipment and Vehicles (4)                                       | \$11,598/\$79,434            | As incurred          | Before Launch                        | Franchisor, vendors                          |
| Online Training with National Roofing | \$250 | As incurred | Before Launch | Suppliers |
| Contractors Association |  |  |  |  |
| GPS Tracking Systems                                             | \$150/\$400                  | As incurred          | Before Launch                        | Vendors                                      |
| Insurance (5)                                                    | \$2,000/\$20,000             | As incurred          | Before Launch                        | Vendors                                      |
| Computer, Phone and Technology | \$3,000/\$6,000 | Lump sum | At delivery | Suppliers, vendors |
| Systems (6) |  |  |  |  |
| Professional Fees (7)                                            | \$1,000/\$5,000              | As incurred          | As incurred                          | Suppliers                                    |
| Office Related Expenses                                          | \$500/\$1,250                | As incurred          | Before Launch                        | Suppliers                                    |
| Local Software Setup Fee (8)                                     | \$0 - \$2,000                | As incurred          | Before Launch                        | Suppliers                                    |
| Business Licenses and Permits (9)                                | \$2,000/\$10,000             | As incurred          | Before Launch                        | Federal, state and local government agencies |
| Opening Advertising/Marketing (10)                               | \$20,000/\$30,000            | As incurred          | Varied times                         | Vendors                                      |
| Advertising/Marketing (Ongoing)(11)                              | \$15,000/\$40,000            | As incurred          | Varied times                         | Vendors                                      |
| Additional Funds - 3 months (12)                                 | \$65,000                     | As incurred          | Varied times                         | Suppliers, utilities                         |
| TOTAL (13)                                                       | \$

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 24–27)

Question 3

What is the total number of hours of training, both classroom and on-the-job, that Bumble Roofing provides?

Accepted Answer

| Subject                                | Hours of Classroom Training | Hours of On-the-Job Training | Location                                               |
|----------------------------------------|--------------------------------|---------------------------------|--------------------------------------------------------|
| Sales Training                         | 16                             | 0                               | California, Virginia, or another location we designate |
| Administration and Operations Training | 32                             | 0                               | California, Virginia, or another location we designate |
| Product Training                       | 8                              | 0                               | California, Virginia, or another location we designate |
| Field Training                         | 8                              | 0                               | California, Virginia, or another location we designate |
| Total                                  | 64                             | 0                               | California, Virginia, or another location we designate |

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 30–37)

Question 4

According to the Bumble Roofing FDD, are there any states listed where the franchise registration is not currently pending?

Accepted Answer

AME OF MAKER(S)]

Address of Maker(s): [NOTICE ADDRESS]

Telephone Number(s) of Maker: [TELEPHONE NUMBER]
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## **AMORTIZATION SCHEDULE**

**[INSERT AMORTIZATION SCHEDULE]**
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## **EXHIBIT J**

## BUMBLE ROOFING FRANCHISOR, LLC STATE EFFECTIVE DATES
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## **State Effective Dates**

The following states have franchise laws that require that the Franchise Disclosure Document be registered or filed with the state, or be exempt from registration:

California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.

Source: Item 23 — RECEIPT (FDD pages 53–188)

Question 5

Besides Bumble Roofing, what other companies has Erin Zide served as Vice President of Franchise Recruiting for since July 2024?

Accepted Answer

Ms. Zide has been the Vice President of Franchise Recruiting since July 2024. Ms. Zide has also served as the Vice President of Franchise Recruiting for Archadeck, Conserva Irrigation and OLP since July 2024.

Source: Item 2 — BUSINESS EXPERIENCE (FDD pages 13–16)

Question 6

Besides a fixed amount, what is the other option for the amount Bumble Roofing franchisees must spend on advertising after the first year?

Accepted Answer

tances. ITEM 6 OTHER FEES | Type of Fee | A | mount | | Due Date | Remarks | |---------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|-------------|----------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------| | | You must pay us a calendar year-to-da to: Year-to-Date Gross Revenue | Royalty Percentage | | | Payable to us. See Note 1 for a chart of Minimum Royalties and Note 2 for the definition of Gross Revenues. | | | \$0 to \$2,000,000 | 6.5% | | Payable monthly on | If applicable, and at our discretion, the Minimum Royalty may be abated during | | Royalty Fee | \$2,000,001 to \$5,000,000 \$5,000,001 and above Beginning 7-months after opening, the Royalty payable will be equal to the greater of: (a) the amount described in the table above based on year-to-date Gross Revenue; or (b) the A minimum of \$65 | 5.5% 4.5% | | or before the 5 ^th day of each month to install roofing. | certain months of the year due to seasonal factors in your Territory. We will determine if seasonal factors apply to your Territory in our sole discretion. Seasonal factors apply to winter weather states in which adverse weather conditions do not allow franchisees | | Individual | months of operation \$15,000 for each act Territory. | ns, plus an addit | ional | | Payable to third-party suppliers or to us for payment directly to National Account | | Advertising | After the first year of operations, you must spend each year the greater of (a) \$65,000 plus an additional \$15,000 for each | | As incurred | vendors where required. All advertising must be approved by us prior to publications or use. See Note 3. | | | Investment | additional contiguous Territory, or (b) 5% of the prior year's Gross Revenues. | | | | | | Opening Advertising | Minimum of \$20,000 over the six-month period commencing as of the month prior to opening and continuing for the five months after opening. Source: Item 6 — OTHER FEES (FDD pages 19–24)

Question 7

What are all the fees a Bumble Roofing franchisee might pay, considering both the initial fees in Item 5 and the other fees listed in Item 6?

Accepted Answer

[Item 5: INITIAL FEES]

## ITEM 5 INITIAL FEES

## Franchise Agreement

**Initial Franchise Fee.** You must pay us an Initial Franchise Fee equal to $49,500, provided that your Territory is less than 100,000 single-family households ("**Household Limit**"). The Initial Franchise Fee is payable in full when you sign a Franchise Agreement, and except as described below, is not
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refundable. Other than the Initial Franchise Fee, there are no other initial fees charged to you. If your Territory is larger than the Household Limit, we reserve the right to charge you an increased Initial Franchise Fee, which will be determined on a case-by-case basis.

Additional Household Fee. If we permit you to purchase additional geographic areas for a specific Territory so that the Territory exceeds 100,000 single-family households, then you must pay us an additional fee in an amount equal to the single-family households in your Territory in excess of 100,000 multiplied by $0.25 (the "Additional Household Fee"). We do not anticipate granting a single Territory that exceeds 149,999 single-family households. The Additional Household Fee is earned upon receipt and not refundable under any circumstances.

For example, if we permit you to purchase additional geographic areas for your Territory so that the individual Territory consists of a total of 120,000 single-family households, then you must pay us an Additional Household Fee equal to $5,000, for a total Initial Franchise Fee of $54,500 (which is equal to $49,500 + $5,000).

VetFran Discount. We are a member of the International Franchise Association ("IFA"), and support and participate in IFA's VetFran Program. If you are an honorably discharged veteran who meets our qualifications for new BUMBLE ROOFING® franchisees, we will discount the Initial Franchise Fee by 15%. The VetFran discount may be used only once for one Territory. The VetFran discount may applied toward the purchase of only one of the franchise concepts offered by us and our Affiliates.

**Discount for Employees of Franchisees.** Under certain circumstances, we may offer a discount program to reward qualified employees of our franchisees who: (a) have been recommended in writing by a franchisee; (b) have been employed in good standing by a franchisee for at least 2 years; and (c) meet our qualifications for new BUMBLE ROOFING® franchisees. Under certain circumstances, we offer a 5% discount for every year of employment over 2 years subject to a maximum discount of 50% as shown below:

If we determine that you are unable or unwilling to handle a particular job, we reserve the right to assign that job to another BUMBLE ROOFING® franchisee, complete the job ourselves or hire a third-party specialist to assist with the job.

We may choose to provide you with continuing national, regional or local conference calls, meetings or conferences, which we hold in our discretion. You must pay the then-current conference fee (between $300 to $750 per person), if any, and all travel and living expenses. As of the date of this disclosure document, we strongly recommend but do not require, that you attend these conferences. We reserve the right to make future conference calls, meetings or conferences mandatory. These future training events are held at our Richmond, Virginia headquarters or at a location chosen by us (Section 7.4(b) of the Franchise Agreement).

(g) Franchisee pays Franchisor the successor franchise fee equal to the greater of $5,000 or 25% of the then existing Initial Franchise Fee as described in the Franchisors then existing Franchise Agreement ("**Successor Franchise Fee**"), which is due and payable to Franchisor at the time of signing the Successor Franchise Agreement;

Question 8

What is the geographic scope of the non-compete agreement for a Bumble Roofing franchisee after the termination or expiration of the franchise agreement, in relation to other franchisees?

Accepted Answer

- 4.1 During the Initial Term and any Interim Period and for so long as Franchisee is in compliance with all of its obligations hereunder, except as otherwise provided in this Agreement, including Franchisor's reservation of rights as set forth in Sections 4.2, 4.4 and 4.7, neither Franchisor nor any Affiliate will establish or license another person or entity to establish a Roofing Business using the Marks licensed to Franchisee within the Territory encompassed by the boundaries and with the population base set forth in **Attachment A**, attached hereto and incorporated herein by reference. Except as otherwise specifically provided in this Agreement, this Agreement does not restrict Franchisor or its Affiliates and does not grant rights to Franchisee to pursue any of Franchisor's or its Affiliates other business concepts other than the Roofing Business.
- 4.2 Franchisee acknowledges that Franchise granted hereunder is non-exclusive and that Franchisor and its Affiliates retain the exclusive right, among others:
  - (a) to use, and to license others to use, the Marks and System for the operation of Roofing Businesses at any location other than in the Territory, regardless of proximity to the Territory;
  - (b) to use, license or franchise the use of trademarks or service marks other than the Marks, whether in alternative channels of distribution or at any location including the Territory, in association with operations that are the same as, similar to or different than Roofing Business;
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Source: Item 22 — CONTRACTS (FDD page 53)

Question 9

How many SpeeDee franchises are co-branded with Midas as of September 30, 2024, and does Bumble Roofing have any similar co-branding arrangements?

Accepted Answer

SpeeDee Worldwide, LLC ("SpeeDee") is a franchisor of automotive maintenance and repair services operating under the SpeeDee® trade name and business system. SpeeDee is a subsidiary of GMI. SpeeDee is a Delaware limited liability company with a principal business address of 5575 DTC Parkway, Suite 100, Greenwood Village, Colorado 80111. In January 2021, SpeeDee became an affiliate through an acquisition. SpeeDee has been franchising since 1986, and as of September 30, 2024, there were 65 franchises operating in the United States and 22 franchises operating internationally. Until January 2017, SpeeDee also offered co-branding franchises under a separate Franchise Disclosure Document and different franchise agreement with its former parent, Midas International Corporation ("Midas"), for a Midas/SpeeDee co-branding shop. SpeeDee also operates 20 SpeeDee franchises in the United States which are co-branded with Midas, who is not an affiliate. SpeeDee has not conducted a business of the type that you will operate and has not offered franchises in any other line of business.

Except as described above, there are no other parents, predecessors or affiliates required to be disclosed in this Item 1.

#### Franchise Offered

We offer franchises for the operation of Roofing Businesses under the "BUMBLE ROOFING" service mark, and other trademarks, trade names, service marks and logos we periodically designate ("Bumble Roofing Marks"). A Roofing Business offers and sells a full offering of roofing related products and services including replacement and maintenance options for residential and commercial customers. The franchise is operated under a business format per a unique system, including our valuable know-how, information, trade secrets, methods, Operations Manual, standards, designs, methods of trademark usage, copyrights, sources and specifications, confidential electronic and other communications, methods of Internet usage, marketing programs, and research and development connected with the operation and promotion of Roofing Businesses ("System"). We have the right to change or otherwise modify the System at any time.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENT, PREDECESSORS AND AFFILIATES (FDD pages 8–13)

Question 10

Since when has SpeeDee Worldwide, LLC been franchising, and how does this compare to Bumble Roofing?

Accepted Answer

ness.

SpeeDee Worldwide, LLC ("SpeeDee") is a franchisor of automotive maintenance and repair services operating under the SpeeDee® trade name and business system. SpeeDee is a subsidiary of GMI. SpeeDee is a Delaware limited liability company with a principal business address of 5575 DTC Parkway, Suite 100, Greenwood Village, Colorado 80111. In January 2021, SpeeDee became an affiliate through an acquisition. SpeeDee has been franchising since 1986, and as of September 30, 2024, there were 65 franchises operating in the United States and 22 franchises operating internationally.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENT, PREDECESSORS AND AFFILIATES (FDD pages 8–13)

Question 11

What are the two options for calculating the minimum annual advertising spend after the first year of operations for a Bumble Roofing franchise?

Accepted Answer

in your Territory on your behalf. After the first year of operations, you must spend each year the greater of (a) \$65,000 plus an additional \$15,000 for each additional contiguous Territory, or (b) 5% o

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 30–37)

Question 12

Is a Bumble Roofing franchisee allowed to advertise outside of their designated territory, and if so, under what conditions?

Accepted Answer

authorize Franchisee to utilize any Improvement that may be developed by other franchisees and is authorized generally for use by other franchisees.

## **11. ADVERTISING AND PROMOTION**

- 11.1 Franchisee acknowledges that local marketing, promotion and advertising are required to advise the public of the Business. During the first twelve (12) months of operations, Franchisee will spend a minimum of \$65,000 on promotional advertising within the Territory ("**Individual Advertising Investment**"), plus an additional \$15,000 for each additional contiguous Territory. Franchisee may not advertise outside its Territory without Franchisor's approval, which may be granted or withheld in Franchisor's discretion. After the first year of

Source: Item 22 — CONTRACTS (FDD page 53)

Question 13

According to the Bumble Roofing FDD, under what circumstances can financial performance information differing from Item 19 be given to a prospective franchisee?

Accepted Answer

mation, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet a franchisee is considering buying, or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.

As of September 30, 2024, there was one affiliate-owned Roofing Business and 18 franchised Roofing Businesses operating in 55 territories. This financial performance representation consists of three sections. Sections A and B disclose historical information for the affiliate-owned Roofing Business that has operated for at least twelve months and that operated for the full duration of the reporting period October 1, 2023 through September 30, 2024. These financial performance representations are for the outlet owned and operated by our affiliate in Los Angeles, CA which opened in June 2020 (the "Affiliate Unit").

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 45–50)

Question 14

According to the New York Addendum, what specific items in Item 17 of the Bumble Roofing Franchise Disclosure Document are affected by the non-waiver provisions?

Accepted Answer

Any provision in the Franchise Agreement requiring franchisee to sign a general release of claims against franchisor does not release any claim franchisee may have under New York General Business Law, Article 33, Sections 680-695.

The New York Franchise Law shall govern any claim arising under that law.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–45)

Question 15

To whom does the addendum in Item 17 apply regarding Bumble Roofing franchises?

Accepted Answer

HISOR, LLC STATE-SPECIFIC ADDENDA
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## CALIFORNIA ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT

To the extent the California Franchise Investment Law, Cal. Corp. Code §§ 31000-31516 or the California Franchise Relations Act, Cal. Bus. & Prof. Code §§20000-20043 applies, the terms of this Addendum apply.

THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE DISCLOSURE DOCUMENT.

OUR WEBSITE HAS NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION AND COMPLAINTS CONCERNING THE CONTENTS OF THIS WEBSITE MAY BE DIRECTED TO THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION AT WWW.DFPI.CA.GOV.

SECTION 31125 OF THE CALIFORNIA CORPORATIONS CODE REQUIRES US TO GIVE YOU A DISCLOSURE DOCUMENT, IN A FORM CONTAINING THE INFORMATION THAT THE COMMISSIONER MAY BY RULE OR ORDER REQUIRE, BEFORE A SOLICITATION OF A PROPOSED MATERIAL MODIFICATION OF AN EXISTING FRANCHISE.

## Item 3, Additional Disclosure:

Neither we nor any person described in Item 2 of the Disclosure Document is subject to any currently effective order of any National Securities Association or National Securities Exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A. 78a et seq. suspending or expelling such persons from membership in such association or exchange.

## Item 6, Additional Disclosure:

The highest interest rate allowed by law in California is 10% annually.

## Item 17, Additional Disclosures:

The franchise agreement requires franchisee to execute a general release of claims upon renewal or transfer of the franchise agreement. California Corporations Code Section 31512 provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of that law or any rule or order there under is void. Section 31512 voids a waiver of your rights under the Franchise Investment Law (California Corporations Code Section 20010 voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code Sections 20000 – 20043).

The franchise agreement requires application of the laws of the Commonwealth of Virginia. This provision may not be enforceable under California law.

California Business and Professions Code Sections 20000 through 20043 provide rights to the franchisee concerning termination, transfer or non-renewal of a franchise. If the franchise agreement contains a provision that is inconsistent with the law, the law will control.

The franchise agreement provides for termination upon bankruptcy. This provision may not be enforceable under federal bankruptcy law (11 U.S.C.A. §101 et seq.)
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The franchise agreement requires binding arbitration. The arbitration will occur in Richmond, Virginia with the cost being borne equally by the parties. Prospective franchisees are encouraged to consult with private legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of a franchise agreement restricting venue to a forum outside the State of California.

The franchise agreement contains a covenant not to compete which extends beyond the termination of the franchise. This provision may not be enforceable under California law.

## Exhibit G, Additional Disclosure:

No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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## CALIFORNIA ADDENDUM TO FRANCHISE AGREEMENT

To the extent the California Franchise Investment Law, Cal. Corp. Code §§ 31000-31516 or the California Franchise Relations Act, Cal. Bus. & Prof. Code §§20000-20043 applies, the terms of this Addendum apply.

1. Notwithstanding anything to the contrary contained in the Franchise Agreement, to the extent that the Franchise Agreement contains provisions that are inconsistent with the following, such provisions are hereby amended:

The Franchise Agreement requires franchisee to execute a general release of claims upon renewal or transfer of the franchise agreement. California Corporations Code Section 31512 provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of that law or any rule or order there under is void. Section 31512 voids a waiver of your rights under the Franchise Investment Law (California Corporations Code Section 20010 voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code Sections 20000 – 20043).

The Franchise Agreement requires application of the laws of the Commonwealth of Virginia. This provision may not be enforceable under California law.

California Business and Professions Code Sections 20000 through 20043 provide rights to the franchisee concerning termination or non-renewal of a franchise. The Federal Bankruptcy Code also provides rights to franchisee concerning termination of the Franchise Agreement upon certain bankruptcy-related events. If the Franchise Agreement is inconsistent with the law, the law will control.

The Franchise Agreement requires binding arbitration. The arbitration will occur in Richmond, Virginia with the cost being borne equally by the parties. Prospective franchisees are encouraged to consult with private legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of a franchise agreement restricting venue to a forum outside the State of California.

The Franchise Agreement contains a covenant not to compete which extends beyond the termination of the franchise. This provision may not be enforceable under California law.

No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

2. Any capitalized terms that are not defined in this Addendum shall have the meaning given them in the Franchise Agreement.
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3. Except as expressly modified by this Addendum, the Franchise Agreement remains unmodified and in full force and effect.

This Addendum is being entered into in connection with the Franchise Agreement. In the event of any conflict between this Addendum and the Franchise Agreement, the terms and conditions of this Addendum shall apply.

IN WITNESS WHEREOF, the undersigned have executed this Addendum as of the date Franchisor signs below.

BUMBLE ROOFING FRANCHISOR, LLC Its: Its:![](_page_150_Picture_0.jpeg)

## ILLINOIS ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT

To the extent the Illinois Franchise Disclosure Act, Ill. Comp. Stat. §§705/1 – 705/44 applies, the terms of this Addendum apply.

## Item 17, Additional Disclosures. The following statements are added to Item 17:

Illinois law governs the agreements between the parties to this franchise.

Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a franchise agreement may provide for arbitration outside of Illinois.

Section 41 of the Illinois Franchise Disclosure Act provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.

Your rights upon termination and non-renewal of a franchise agreement are set forth in section 19 and 20 of the Illinois Franchise Disclosure Act.

## Exhibit G, Additional Disclosure:

No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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## ILLINOIS ADDENDUM TO FRANCHISE AGREEMENT

To the extent the Illinois Franchise Disclosure Act, Ill. Comp. Stat. §§705/1 – 705/44 applies, the terms of this Addendum apply.

1. Notwithstanding anything to the contrary contained in the Franchise Agreement, to the extent that the Franchise Agreement contains provisions that are inconsistent with the following, such provisions are hereby amended:

Illinois law governs the agreements between the parties to this franchise.

Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a franchise agreement may provide for arbitration outside of Illinois.

Section 41 of the Illinois Franchise Disclosure Act provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.

Your rights upon termination and non-renewal of a franchise agreement are set forth in section 19 and 20 of the Illinois Franchise Disclosure Act.

No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

- 2.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–45)

Question 16

Does the Bumble Roofing agreement allow the Franchisor to file claims against the Franchisee in a court outside of Virginia?

Accepted Answer

Franchisee acknowledges and agrees that in addition to, and not in lieu of, all other remedies or rights that Franchisor might otherwise have by virtue of Franchisee's breach of this Agreement, Franchisee must reimburse Franchisor for all attorneys' fees, costs, and expenses (and interest on such fees, costs and expenses) Franchisor incurs to enforce the terms of this Agreement or any obligation owed to Franchisor by Franchisee, including but not limited to amounts incurred in connection with preparation of default notices and related correspondence, or to defend any claim that Franchisee brings against Franchisor.

## **18. NOTICES**

Any notice of default and all notices or other communications required or permitted to be given or made pursuant to any of the provisions of this Agreement shall be deemed to have been duly given or made for all purposes if made in writing and (a) hand delivered, (b) sent by a nationally recognized overnight courier or (c) sent by electronic mail, as follows:

## **To Franchisor:**

BUMBLE ROOFING FRANCHISOR, LLC

2426 Old Brick Road Glen Allen, Virginia 23060 Attention: General Counsel

Source: Item 22 — CONTRACTS (FDD page 53)

Question 17

Does Bumble Roofing allow for any exceptions for late report submissions during the Interim Period?

Accepted Answer

- 3.4 If Franchisee does not sign a Successor Franchise Agreement prior to the expiration of this Agreement and continues to accept the benefits of this Agreement after the expiration of this Agreement, then at the option of Franchisor, this Agreement may be treated either as (i) expired as of the date of expiration with Franchisee then operating without a license or franchise to do so and in violation of Franchisor's rights; or (ii) continued on a month-to-month basis ("**Interim Period**") until one party provides the other with written notice of such party's intent to terminate the Interim Period, in which case the Interim Period will terminate 30 days after receipt of the notice to terminate the Interim Period. In the latter case, all obligations of Franchisee shall remain in full force and effect during the Interim Period as if this Agreement had not expired, and all obligations and restrictions imposed on Franchisee upon expiration of this Agreement shall be deemed to take effect upon termination of the Interim Period.

Source: Item 22 — CONTRACTS (FDD page 53)

Question 18

Is the Bumble Roofing business subject to seasonal sales fluctuations?

Accepted Answer

The BUMBLE ROOFING® system presently focuses on serving residential and commercial customers in urban and suburban areas. You may have to compete with other businesses, including franchised operations, national chains and independently owned companies offering services similar to those in the BUMBLE ROOFING® business to residential and commercial customers. The market is well developed, and sales may be seasonal in some parts of the country.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENT, PREDECESSORS AND AFFILIATES (FDD pages 8–13)

Question 19

Can Bumble Roofing change the training personnel?

Accepted Answer

The entire training program is subject to change due to updates in materials, changes or additions to the services offered, introduction of new methods and cleaning techniques, manuals and personnel. The subjects and time periods allocated to the subjects actually taught to specific franchisees may vary, based on the experience of the persons being trained.

Our training is conducted by: David Bitan, who has 16 years of experience in the field and 5 years of experience with the BUMBLE ROOFING® system; and Jake Mathre, who has 1 year of experience with the BUMBLE ROOFING® system and 8 years of experience with Empower Brands franchise operations. We may change, supplement or substitute training personnel as necessary, and we may delegate our duties and share our responsibilities with regard to training. Any individual involved in training will have at least one year of experience in the subject he/she teaches.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 30–37)

Question 20

Can Bumble Roofing charge a fee for supplemental and refresher training programs?

Accepted Answer

We may require you or your Designated Business Manager attend all supplemental and refresher training programs that we designate. We may charge you a reasonable fee for any supplemental and refresher training programs. You must pay the then-current fee for such training programs, if any, and all personal travel and living expenses.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 30–37)

Question 21

What is the condition for a Bumble Roofing franchisee to transfer the agreement to a corporation or LLC?

Accepted Answer

- (b) No shares or interest in the capital of such corporation, limited liability company, partnership or other business entity shall be issued nor shall Franchisee directly or indirectly, voluntarily or involuntarily, by operation of law or otherwise, sell, assign, transfer, convey, donate, pledge, mortgage or otherwise encumber any such shares or interest or offer or attempt to do so or permit the same to be done without Franchisor's prior written consent;
- (c) The corporation shall maintain stop transfer instructions against the transfer of shares on its records subject to the restrictions of this Section and shall have all outstanding shares endorsed with the following legend printed conspicuously upon the face of each certificate:

*"The transfer of this certificate is subject to the terms and conditions of a certain Franchise Agreement with BUMBLE ROOFING FRANCHISOR, LLC Reference is made to said Franchise Agreement and to the restrictive provisions of the articles of this corporation."*

- (d) The articles of incorporation, articles of organization, operating agreement, partnership agreement, shareholder agreement, and by-laws of the corporation, limited liability company, partnership or other business entity shall provide that its objectives or business is confined exclusively to the operation of the Business as provided for in this Agreement, and recite that the issuance and transfer of any shares, membership interest, partnership interest or other interest is restricted by the terms of this Agreement, and copies thereof shall be furnished to Franchisor upon request;

- (e) Franchisor's consent to a transfer of any interest subject to the restrictions of this Section shall not constitute a waiver of any claim it may have against the assignor, nor shall it be deemed a waiver of Franchisor's right to demand exact compliance with any of the terms of this Agreement by the assignee;

- (f) The corporation, partnership, limited liability company or other business entity shall advise Franchisor and keep Franchisor current as to the names and addresses of the directors, officers, members, partners and shareholder of and those persons financially involved in the corporation, partnership, limited liability company or other business entity; and

- (g) Franchisee agrees to devote its full time and best efforts to manage the day-to-day operations of the Business unless it has an operational partner or Designated Business Manager approved by Franchisor.

Source: Item 22 — CONTRACTS (FDD page 53)

Question 22

What condition triggers the $233,000 earnout provision related to the Wallaby Windows and Koala Insulation acquisition by the company that owns Bumble Roofing?

Accepted Answer

## NOTE 7 – BUSINESS ACQUISITIONS (Continued)

#### Wallaby Windows and Koala Insulation

On April 13, 2023, the Company acquired the assets of Wallaby, Wallaby-Melbourne, and Koala (collectively referred to as "Wallaby and Koala") for the purpose of adding window, door, and insulation brands to the existing portfolio.

After net working capital adjustments, the purchase price of Wallaby and Koala was approximately \$93,203,000 which includes a \$233,000 earnout provision subject to Wallaby and Koala maintaining certain system wide revenue thresholds and other metrics. The acquisition was funded by capital contributions from Empower consisting of units of ownership interest in BCAT valued at approximately

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)

Question 23

What are the conditions for Bumble Roofing franchisees to have additional trainees attend future training courses at no additional cost?

Accepted Answer

| Type of Fee                           | Amount                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Due Date                                           | Remarks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Supplemental or | Additional trainees or replacement trainees may attend any future training courses based on available space and scheduling at no additional cost.  If no courses are scheduled, or no space is available, the current Training Fee may be assessed. This fee is currently $5,000 per trainee. For training at your location, our then-current daily fees per trainer will be charged. Currently our fee is $250 per trainer per day plus travel, per diem and lodging expenses as required. | Upon demand. | We provide initial training for up to three individuals at no charge. We require any new Designated Business Manager to complete our training program, and we may charge a fee for such training. If no courses are schedule or space in such courses is unavailable, we may also charge a fee for training for any individuals that we train beyond the two individuals that we train at no charge. |
| Refresher Training |  |  |  |

Source: Item 6 — OTHER FEES (FDD pages 19–24)

Question 24

What is the consequence if a Bumble Roofing franchisee fails to meet the minimum Individual Advertising Investment?

Accepted Answer

ing.
![](_page_33_Picture_0.jpeg)

You must invest a minimum of \$65,000 ("Individual Advertising Investment") for marketing purposes in your Territory during the first 12 months of operations, plus an additional \$15,000 for each additional contiguous Territory. The Individual Advertising Investment must be used by you for local advertising, to be selected and placed by you, in your Territory. These funds are reserved only for marketing, promotions and advertising of your Roofing Business. You may not advertise outside your Territory without our approval, which may be withheld in our sole discretion. You must submit proof of your Individual Advertising Investment expenditures to us in the frequency we prescribe (which may be monthly and/or annually), and upon our request. You must obtain our prior written approval of all of your marketing, promotional and advertising materials. We have the right, but not the obligation, to collect up to the minimum required Individual Advertising Investment from you and administer it on marketing and advertising investments in your Territory on your behalf. After the first year of operations, you must spend each year the greater of (a) \$65,000 plus an additional \$15,000 for each additional contiguous Territory, or (b) 5% o

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 30–37)

Question 25

What constitutes sufficient grounds for termination of the Franchise Agreement(s) based on the Bumble Roofing promissory note?

Accepted Answer

- 8. This Note constitutes part performance of a certain written Franchise Agreement(s) between maker and [ENTITY NOTEHOLDER] dated [DATE OF FRANCHISE AGREEMENT(S)] and as such, will be read and interpreted in a manner consistent with the terms of said agreement. Default under the terms of this Note will be sufficient grounds for termination or cancellation of the Franchise Agreement(s) in accordance with the terms of the Franchise Agreement(s).

Source: Item 23 — RECEIPT (FDD pages 53–188)

Question 26

Does default under the Bumble Roofing promissory note automatically terminate the Franchise Agreement(s)?

Accepted Answer

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).
![](_page_177_Picture_0.jpeg)

- 8. This Note constitutes part performance of a certain written Franchise Agreement(s) between maker and [ENTITY NOTEHOLDER] dated [DATE OF FRANCHISE AGREEMENT(S)] and as such, will be read and interpreted in a manner consistent with the terms of said agreement. Default under the terms of this Note will be sufficient grounds for termination or cancellation of the Franchise Agreement(s) in accordance with the terms of the Franchise Agreement(s).
- 9. The makers and endorsers of this Note waive and excuse presentment for acceptance and payment, notice of dishonor, and protest of dishonor, and agree to any extension of time of payment and partial payments before, at or after maturity.
- 10.

Source: Item 23 — RECEIPT (FDD pages 53–188)

Question 27

What is the dependency for a Bumble Roofing franchisee to avoid breaching their Franchise Agreement when advertising?

Accepted Answer

If you advertise or market your Roofing Business outside of your Territory, unless otherwise approved by us, you will be in breach of your Franchise Agreement, and we would have the right to terminate your franchise.

Source: Item 12 — TERRITORY (FDD pages 37–39)

Question 28

What is the dependency between Gross Revenues and advertising spend after the first year of operations for a Bumble Roofing franchise?

Accepted Answer

ing.
![](_page_33_Picture_0.jpeg)

You must invest a minimum of \$65,000 ("Individual Advertising Investment") for marketing purposes in your Territory during the first 12 months of operations, plus an additional \$15,000 for each additional contiguous Territory. The Individual Advertising Investment must be used by you for local advertising, to be selected and placed by you, in your Territory. These funds are reserved only for marketing, promotions and advertising of your Roofing Business. You may not advertise outside your Territory without our approval, which may be withheld in our sole discretion. You must submit proof of your Individual Advertising Investment expenditures to us in the frequency we prescribe (which may be monthly and/or annually), and upon our request. You must obtain our prior written approval of all of your marketing, promotional and advertising materials. We have the right, but not the obligation, to collect up to the minimum required Individual Advertising Investment from you and administer it on marketing and advertising investments in your Territory on your behalf. After the first year of operations, you must spend each year the greater of (a) \$65,000 plus an additional \$15,000 for each additional contiguous Territory, or (b) 5% o

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 30–37)

Question 29

How does Bumble Roofing determine the Initial Franchise Fee if the territory exceeds the Household Limit of 100,000 single-family households?

Accepted Answer

ranchise Fee.** You must pay us an Initial Franchise Fee equal to \$49,500, provided that your Territory is less than 100,000 single-family households ("**Household Limit**"). The Initial Franchise Fee is payable in full when you sign a Franchise Agreement, and except as described below, is not
![](_page_16_Picture_0.jpeg)

refundable. Other than the Initial Franchise Fee, there are no other initial fees charged to you. If your Territory is larger than the Household Limit, we reserve the right to charge you an increased Initial Franchise Fee, which will be determined on a case-by-case basis.

Additional Household Fee. If we permit you to purchase additional geographic areas for a specific Territory so that the Territory exceeds 100,000 single-family households, then you must pay us an additional fee in an amount equal to the single-family households in your Territory in excess of 100,000 multiplied by \$0.25 (the "Additional Household Fee"). We do not anticipate granting a single Territory that exceeds 149,999 single-family households. The Additional Household Fee is earned upon receipt and not refundable under any circumstances.

For example, if we permit you to purchase additional geographic areas for your Territory so that the individual Territory consists of a total of 120,000 single-family households, then you must pay us an Additional Household Fee equal to \$5,000, for a total Initial Franchise Fee of \$54,500 (which is equal to \$4

Source: Item 5 — INITIAL FEES (FDD pages 16–19)

Question 30

In the event of a conflict between the Virginia Addendum and the Bumble Roofing Franchise Agreement, which document's terms and conditions will apply?

Accepted Answer

This Addendum is being entered into in connection with the Franchise Agreement. In the event of any conflict between this Addendum and the Franchise Agreement, the terms and conditions of this Addendum shall apply.

IN WITNESS WHEREOF, the undersigned have executed this Addendum as of the date Franchisor signs below.

BUMBLE ROOFING FRANCHISOR, LLC Its: Its:![](_page_165_Picture_0.jpeg)

## VIRGINIA ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT

To the extent the Virginia Retail Franchising Act, Va. Code §§13.1-557 – 13.1-574 applies, the terms of this Addendum apply.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–45)

Question 31

To what extent does the New York General Business Law, Article 33, §§680 - 695 apply to the Bumble Roofing Franchise Agreement?

Accepted Answer

To the extent the New York General Business Law, Article 33, §§680 - 695 applies, the terms of this Addendum apply.

1. Notwithstanding anything to the contrary contained in the Franchise Agreement, to the extent that the Franchise Agreement contains provisions that are inconsistent with the following, such provisions are hereby amended:

> Any provision in the Franchise Agreement that is inconsistent with the New York General Business Law, Article 33, Section 680 - 695 may not be enforceable.

> Any provision in the Franchise Agreement requiring franchisee to sign a general release of claims against franchisor does not release any claim franchisee may have under New York General Business Law, Article 33, Sections 680-695.

The New York Franchise Law shall govern any claim arising under that law.

The foregoing choice of law should not be considered a waiver of any right conferred upon the franchisor or the franchisee by Article 33 of the General Business Law of the State of New York.

- 6. Franchise Questionnaires and Acknowledgements--No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
- 7. Receipts--Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earlier of the first personal meeting, ten (10) business days before the execution of the franchise or other agreement, or the payment of any consideration that relates to the franchise relationship.

3. The following is added to the end of the "Summary" sections of Item 17(c), titled "**Requirements for a franchisee to renew or extend**," and Item 17(m), entitled "**Conditions for franchisor approval of transfer**":

However, to the extent required by applicable law, all rights you enjoy and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of this proviso that the non-waiver provisions of General Business Law Sections 687(4) and 687(5) be satisfied.

- 4. The following language replaces the "Summary" section of Item 17(d), titled "**Termination by franchisee**": You may terminate the agreement on any ground available by law.
- 5. The following is added to the end of the "Summary" sections of Item 17(v), titled "**Choice of forum**," and Item 17(w), titled "**Choice of law**":

The foregoing choice of law should not be considered a waiver of any right conferred upon the franchisor or the franchisee by Article 33 of the General Business Law of the State of New York.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–45)

Question 32

What factors might cause changes to the Bumble Roofing training program?

Accepted Answer

The entire training program is subject to change due to updates in materials, changes or additions to the services offered, introduction of new methods and cleaning techniques, manuals and personnel. The subjects and time periods allocated to the subjects actually taught to specific franchisees may vary, based on the experience of the persons being trained.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 30–37)

Question 33

Does the FDD mention any exceptions to the standard franchise agreement that might arise due to Empower Brands' involvement with Bumble Roofing?

Accepted Answer

You must operate your Roofing Business per our standard business operating practices and sign our standard franchise agreement ("**Franchise Agreement**"). A copy of our current form Franchise Agreement is attached as Exhibit B. The geographic area granted to you under the Franchise Agreement is referred to as the "**Territory**." Your Roofing Business must offer only authorized services and products as described in the Operations Manual. We have the right to add, modify, or delete any services or products that you must offer or sell at your Roofing Business at any time. We offer a Franchise to those who meet our then-current standards and qualifications, in our determination. As a Franchise operator you may operate one Roofing Business for each Franchise Agreement you sign with us. We will grant one license to a franchisee for up to 100,000 single-family households in a designated geographical area ("**Territory**"). We will use the most recent single-family household and demographic information available in the U.S. Census Data, or other statistical sources of our choosing to determine the single-family household count and resulting Territory. We have the right to change, modify, or delete the single-family household limits or any other demographic factors considered when granting Territories. If you are granted a Territory that include more than 100,000 single-family households, then you will be required to pay an additional fee, as disclosed more fully in Item 5, for each additional single-family household in your Territory above 100,000. ![](_page_12_Picture_0.jpeg) If you operate Roofing Businesses in multiple contiguous Territories in the same market under separate Franchise Agreements, then you will be permitted sign our then-current Aggregate Reporting addendum (currently attached as an exhibit to the Franchise Agreement), which addresses certain overlap under the separate franchise agreements, such as being able to operate the Franchised Business from a single location or submitting one royalty report for all of your Franchised Businesses that operate from a single business location. Source: Item 1 — THE FRANCHISOR, AND ANY PARENT, PREDECESSORS AND AFFILIATES (FDD pages 8–13)

Question 34

Does the FDD outline any specific financial thresholds related to Empower Brands' involvement with Bumble Roofing franchisees?

Accepted Answer

In the event we are required to sit on your board in order for you to obtain the requisite permits, registrations or licenses due to state laws that require an entity to have a certain amount of related experience to obtain the applicable permits, registrations, or licenses, we will not acquire any ownership or voting rights on the board. However, as a condition to sitting on your board, we will require you to use a third-party professional services organization that will be responsible for handling your payroll and to assist you with your obligations to comply with various state employment law. Once you obtain your own permits, registrations, and licenses, we will resign from your board.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENT, PREDECESSORS AND AFFILIATES (FDD pages 8–13)

Question 35

Does the FDD specify any geographic limits on Empower Brands' influence or control over Bumble Roofing franchises?

Accepted Answer

We are a wholly-owned subsidiary of Outdoor Living Brands Holdco, LLC ("OLB Holdco"), a Delaware limited liability company with a principal business address of 2426 Old Brick Road, Glen Allen, Virginia 23060. OLB Holdco is a wholly-owned subsidiary of Empower Brands. Empower Brands was formerly known as Lynx Franchising, LLC from April 2019 to January 2023, and before that was known as Premium Franchise Brands, LLC until April 2019. Empower Brands is owned by Lynx-JP Holdings, Inc., a Delaware corporation ("Lynx-JP Holdings"). Lynx-JP Holdings was formerly known as Jan-Pro Holdings, Inc. and is owned by MidOcean BCAT Holdings, Inc. a Delaware corporation ("BCAT"). BCAT is owned by Bobcat Holdings Group, LP, a Delaware limited partnership ("Bobcat"). Bobcat is majority owned by MidOcean Associates V, LP ("MidOcean"). Empower Brands, Lynx-JP Holdings, BCAT and Bobcat each have a principal business address of 2520 Northwinds Parkway, Suite 375, Alpharetta, Georgia 30009. MidOcean has a principal business address of 245 Park Ave 38th Floor, New York, NY 10167. None of these entities has conducted a business of the type that you will operate and have not offered franchises in any line of business except as otherwise described in this Item 1.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENT, PREDECESSORS AND AFFILIATES (FDD pages 8–13)

Question 36

Does the FDD specify any prohibited actions that Empower Brands is restricted from taking in relation to Bumble Roofing franchisees?

Accepted Answer

nds

Empower Brands is the parent company to the following franchisors, including us: Archadeck Franchisor, LLC ("Archadeck"), Canopy Franchise Corporation ("Canopy"), Conserva Irrigation Franchisor, LLC ("Conserva"), FRSTeam, LLC ("FRSTeam"), Jan-Pro Franchising International, Inc. ("JPI"), Jan-Pro Enterprises, LLC ("JPE"), Koala Insulation Franchisor, LLC ("Koala"), Outdoor Lighting Perspectives Franchisor, LLC ("OLP"), Superior Fence & Rail Franchisor, LLC ("Superior Fence"), and Wallaby Windows Franchisor, LLC ("Wallaby"). Archadeck, Canopy, Conserva, OLP, Koala, Superior Fence, and Wallaby have the same principal business address as us. FRSTeam, JPI, and JPE, each have a principal address of 2520 Northwinds Parkway, Suite 375, Alpharetta, Georgia 30009.

Archadeck is the franchisor of the ARCHADECK franchise system.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENT, PREDECESSORS AND AFFILIATES (FDD pages 8–13)

Question 37

Does the FDD specify any required actions that Empower Brands must take in relation to Bumble Roofing franchisees?

Accepted Answer

In the event we are required to sit on your board in order for you to obtain the requisite permits, registrations or licenses due to state laws that require an entity to have a certain amount of related experience to obtain the applicable permits, registrations, or licenses, we will not acquire any ownership or voting rights on the board. However, as a condition to sitting on your board, we will require you to use a third-party professional services organization that will be responsible for handling your payroll and to assist you with your obligations to comply with various state employment law. Once you obtain your own permits, registrations, and licenses, we will resign from your board.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENT, PREDECESSORS AND AFFILIATES (FDD pages 8–13)

Question 38

After the first year of operations, what are the two options for calculating the minimum annual advertising spend for a Bumble Roofing franchise, and how is the final amount determined?

Accepted Answer

authorize Franchisee to utilize any Improvement that may be developed by other franchisees and is authorized generally for use by other franchisees.

## **11. ADVERTISING AND PROMOTION**

- 11.1 Franchisee acknowledges that local marketing, promotion and advertising are required to advise the public of the Business. During the first twelve (12) months of operations, Franchisee will spend a minimum of \$65,000 on promotional advertising within the Territory ("**Individual Advertising Investment**"), plus an additional \$15,000 for each additional contiguous Territory. Franchisee may not advertise outside its Territory without Franchisor's approval, which may be granted or withheld in Franchisor's discretion. After the first year of

Source: Item 22 — CONTRACTS (FDD page 53)

Question 39

After the first year of operations, what are the two options for the minimum annual advertising spend for a Bumble Roofing franchisee?

Accepted Answer

for each additional contiguous Territory. Franchisee may not advertise outside its Territory without Franchisor's approval, which may be granted or withheld in Franchisor's discretion. After the first year of

Source: Item 22 — CONTRACTS (FDD page 53)

Question 40

Does the Bumble Roofing Franchise Agreement guarantee the same royalty and advertising contributions upon renewal?

Accepted Answer

| Provision | Section in Franchise Agreement or Other Agreement | Summary | |---------------------------------------------------|------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | a. Length of the Franchise Term | Section 3 of Franchise Agreement | Franchise Agreement: 7 years. | | b. Renewal or extension of the term | Section 3 of Franchise Agreement | If you wish to do so, and you satisfy all of the preconditions to obtaining a Successor Franchise, we will offer you the right to obtain an additional term of for a period of time equal to our then-current initial term (but no less than 5 years). | | c. Requirements for franchisee to renew or extend | Section 3 of Franchise Agreement | Renewal means obtaining the right to operate the Business for another term. Requirements to renew include: sign our then-current successor franchise agreement ("Successor Franchise Agreement") for the Successor Term, and this new Franchise Agreement may have materially different terms and conditions (including, e.g. higher royalty and advertising contributions) from the Franchise Agreement that covered your original term, be current in all payments, not have committed 2 breaches in the 12 months before the end of the term, sign release, pay renewal fee, meet our qualifications for new and renewing franchisees, provide n Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–45)

Question 41

For the Bumble Roofing franchise, what is the required waiting period in calendar days between receiving a materially altered Franchise Agreement and signing it?

Accepted Answer

If Bumble Roofing Franchisor, LLC ("**Bumble Roofing**") offers you a franchise, it must provide this disclosure document to you 14 calendar-days before you sign a binding agreement with, or make a payment to, Bumble Roofing or an affiliate in connection with the proposed franchise sale. Iowa and New York require that Bumble Roofing gives you this disclosure document at the earlier of the first personal meeting or 10 business days (or 14 calendar days in Iowa) before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. Michigan requires that Bumble Roofing gives you this disclosure document at least 10 business days before the execution of any binding franchise or other agreement or the payment of any consideration, whichever occurs first.

If Bumble Roofing does not deliver this disclosure document on time or if it contains a false or misleading statement, or a material omission, a violation of federal law and state law may have occurred and should be reported to the Federal Trade Commission, Washington, DC 20580, and the appropriate state agency identified on Exhibit E.

Source: Item 22 — CONTRACTS (FDD page 53)

Question 42

Are Franchisee and Guarantors waiving rights under Section 1542 of the California Civil Code in the release related to Bumble Roofing?

Accepted Answer

[**California-specific language**: Franchisee and Guarantors, on behalf of the Franchisee Parties, waive all rights and protections that they have or may have under Section 1542 of the California Civil Code. Section 1542 provides as follows:

A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.

Franchisee and Guarantors, on behalf of the Franchisee Parties, acknowledge and agree that the foregoing waiver of Section 1542 is an essential, integral and material term of this release and that they have had adequate opportunity to gather all information necessary to enter into this Amendment and to grant the releases contained herein, and need no further information or knowledge of any kind that would otherwise influence the decision to enter into this Amendment.]

Source: Item 22 — CONTRACTS (FDD page 53)

Question 43

Must a Bumble Roofing franchisee modify or discontinue the use of a Mark if Bumble Roofing modifies or discontinues the Mark?

Accepted Answer

You must modify or discontinue the use of a Mark if we modify or discontinue the Mark. If this happens, we will reimburse you for your tangible out of pocket cost of compliance (for example, changing letterhead and business cards). You must not directly or indirectly contest our rights to the Marks, or any other trademarks, trade names, service marks, logos, trade secrets or business techniques that are part of our business.

Source: Item 13 — TRADEMARKS (FDD pages 39–40)

Question 44

What must Bumble Roofing franchisees do to ensure their sublicenses continue if the trademark agreement is terminated?

Accepted Answer

Lynx IP has granted us the perpetual right to use and sublicense others to use the principal Marks, as well as other Marks under a trademark license agreement with an effective date of August 4, 2023. Lynx IP may terminate the trademark agreement if any misuse of these Marks materially impairs the goodwill associated with these Marks, if we violate any provision of the license agreement or we do not comply with Lynx IP's instruction concerning the quality of these Marks. If the trademark agreement is terminated, any then-existing sublicenses (franchises) will continue for the term of the sublicenses, provided that the sublicensees (franchisees) comply with all other terms of their franchise agreements. The trademark license agreement contains no other limitations.

Source: Item 13 — TRADEMARKS (FDD pages 39–40)

Question 45

For Bumble Roofing franchisees, under what condition can gross revenues of franchised businesses be aggregated for royalty fee determination?

Accepted Answer

Franchisor and Franchisee are parties to the Franchise Agreements listed in Exhibit A to this Aggregate Reporting Addendum (the "**Franchise Agreements**") pursuant to which Franchisee operates a bumble roofing® franchise at the locations listed in Exhibit A (the "**Franchised Businesses**") in the territories described in the Franchise Agreements (the "**Territories**").
- 2. Franchisor and Franchisee now desire to modify the provisions of the Franchise Agreements as a result of Franchisee owning multiple Franchised Businesses.

Source: Item 22 — CONTRACTS (FDD page 53)

Question 46

Can the Bumble Roofing franchisor modify the franchisee's territory at the time of renewal?

Accepted Answer

- 3.2 Franchisor reserves the right, but not the obligation, in Franchisor's sole discretion, to modify Franchisee's Territory at the time Franchisee executes a Successor Franchise Agreement to conform the size of Franchisee's Territory to Franchisor's then-current standards for protected territorial areas that are being granted to new BUMBLE ROOFING® franchisees, for example, if there has been an increase or decrease in the population or number of qualified households within Franchisee's original Territory, or if Franchisor uses different standards or calculations in determining the size of protected territories that are granted to new BUMBLE ROOFING® franchisees.

If at the time Franchisee intends to execute a Successor

![](_page_83_Picture_0.jpeg)

Franchise Agreement the size of Franchisee's original Territory encompasses more than one protected territory based upon Franchisor's then-current standards for determining protected territories for new BUMBLE ROOFING® franchisees, then Franchisor we may require Franchisee to execute multiple Successor Franchise Agreements if Franchisee wishes to continue operating within the entire original Territory.

Source: Item 22 — CONTRACTS (FDD page 53)

Question 47

What happens if Bumble Roofing changes the standards and specifications for Services and Products?

Accepted Answer

You must provide specified services and use and sell specified products. The services include restoring, repairing, replacing and maintaining residential, commercial and industrial roofs ("Services"). The products include all supplies, materials and equipment sold, prepared or otherwise dealt with in connection with a Roofing Business ("Products"). We reserve the right to require that you sell additional or different Services and Products in your Roofing Business on 30 days' prior written notice to you. You must provide the Services and sell the Products per our specifications and standards. We reserve the right to change standards and specifications on 30 days prior written notice to you.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–29)

Question 48

What happens if the default interest rate on the Bumble Roofing promissory note exceeds the maximum permitted by law?

Accepted Answer

In the event a default exists after the 10-day notice period has expired, maker promises and agrees:

- A.

That the entire outstanding principal and interest balances, including late charges, will bear interest 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.

Source: Item 23 — RECEIPT (FDD pages 53–188)

Question 49

What happens if Bumble Roofing modifies or discontinues a Mark?

Accepted Answer

You must modify or discontinue the use of a Mark if we modify or discontinue the Mark. If this happens, we will reimburse you for your tangible out of pocket cost of compliance (for example, changing letterhead and business cards). You must not directly or indirectly contest our rights to the Marks, or any other trademarks, trade names, service marks, logos, trade secrets or business techniques that are part of our business.

Source: Item 13 — TRADEMARKS (FDD pages 39–40)

Question 50

What happens if a Bumble Roofing Territory includes more than 100,000 single-family households?

Accepted Answer

We will grant one license to a franchisee for up to 100,000 single-family households in a designated geographical area ("**Territory**"). We will use the most recent single-family household and demographic information available in the U.S. Census Data, or other statistical sources of our choosing to determine the single-family household count and resulting Territory. We have the right to change, modify, or delete the single-family household limits or any other demographic factors considered when granting Territories. If you are granted a Territory that include more than 100,000 single-family households, then you will be required to pay an additional fee, as disclosed more fully in Item 5, for each additional single-family household in your Territory above 100,000.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENT, PREDECESSORS AND AFFILIATES (FDD pages 8–13)

Question 51

What happens to the Bumble Roofing promissory note's balance if the Franchise Agreement(s) rights are sold or transferred?

Accepted Answer

In the event of any sale, transfer assignment, encumbrance or other conveyance of the rights, duties or obligations of maker under the terms of the Franchise Agreement(s) between maker and [ENTITY NOTEHOLDER], the entire unpaid principal and interest balances of this Note as of the date of such sale, transfer, assignment, encumbrance or other conveyance will immediately become due and payable in full without any further notice or demand.

Source: Item 23 — RECEIPT (FDD pages 53–188)

Question 52

Can the holder of the Bumble Roofing promissory note change the method of payment?

Accepted Answer

All payments shall be made by preauthorized Automated Clearinghouse transactions ("ACH") or by such other reasonable method as holder directs at a bank specified by maker in writing to the holder as specified above.

Source: Item 23 — RECEIPT (FDD pages 53–188)

Question 53

If Bumble Roofing charges for supplemental training, who is responsible for the training fees and travel expenses?

Accepted Answer

We may require you or your Designated Business Manager attend all supplemental and refresher training programs that we designate. We may charge you a reasonable fee for any supplemental and refresher training programs. You must pay the then-current fee for such training programs, if any, and all personal travel and living expenses.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 30–37)

Question 54

If any employee or other person speaking on behalf of Bumble Roofing made any statement or promise regarding the costs involved in opening a Bumble Roofing franchise, are you required to state the details of the statement or promise?

Accepted Answer

| 7.  | Did any employee or other person speaking on our behalf make any statement or promise regarding the costs involved in operating a franchise that is not contained in the disclosure document or that is contrary to, or different from, the information contained in the disclosure document? Check one: () Yes () No. If yes, please comment:                                                                                                                                                                                                                                                                                                                                            |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Source: Item 22 — CONTRACTS (FDD page 53)

Question 55

If a Bumble Roofing franchisee abandons the business due to a flood, can the franchisor terminate the agreement?

Accepted Answer

- 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.

Source: Item 22 — CONTRACTS (FDD page 53)

Question 56

If a Bumble Roofing franchisee is in full compliance with the franchise agreement, can they aggregate the gross revenues of each franchised business for royalty fee determination?

Accepted Answer

listed in Exhibit A (the "**Franchised Businesses**") in the territories described in the Franchise Agreements (the "**Territories**").
- 2. Franchisor and Franchisee now desire to modify the provisions of the Franchise Agreements as a result of Franchisee owning multiple Franchised Businesses.

## **AGREEMENT**

- 1. **SINGLE BUSINESS LOCATION**. Franchisor and Franchisee acknowledge and agree that Franchisee will operate the Franchised Businesses from a single business location.
- 2. **MONTHLY ROYALTY FEE AND MARKETING FEE.** Provided that Franchisee is in full compliance with the terms of the Franchise Agreements, Franchisor and Franchisee acknowledge and agree that for purposes of determining the Year-to-Date Gross Revenue and Royalty Fees, Franchisee may aggregate the Gross Revenues of each of the Franchised Businesses operating under the Franchise Agreements.
- 3. **ROYALTY REPORTS**. Franchisor and Franchisee acknowledge and agree that Franchisee's statement of the previous month's Gross Revenues may include the Gross Revenues of all of the Franchised Businesses operating under the Franchise Agreements and that it may submit one royalty report for its Franchised Businesses operating from a single business location.
- 4. **TECHNOLOGY FEES**. Franchisor and Franchisee acknowledge and agree that Franchisee will utilize the same technology package for all of its Franchised Businesses, and Franchisor will only require Franchisee to pay the applicable technology fees as if Franchisee was only operating one Franchised Business.
- 5. **INDIVIDUAL ADVERTISING INVESTMENT**. During the first twelve (12) months of operations, Franchisee will spend a minimum of \$55,000 on promotional advertising within the Territory ("**Individu

Source: Item 22 — CONTRACTS (FDD page 53)

Question 57

If a Bumble Roofing franchisee meets all preconditions for renewal, is the renewal term guaranteed to be the same length as the initial term at the time of renewal?

Accepted Answer

| Provision                                         | Section in Franchise Agreement or Other Agreement | Summary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------------------------------------------------|------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| a. Length of the Franchise Term                   | Section 3 of Franchise Agreement                     | Franchise Agreement: 7 years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| b. Renewal or extension of the term               | Section 3 of Franchise Agreement                     | If you wish to do so, and you satisfy all of the preconditions to obtaining a Successor Franchise, we will offer you the right to obtain an additional term of for a period of time equal to our then-current initial term (but no less than 5 years).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–45)

Question 58

If a Bumble Roofing franchisee requires 7 hours of bookkeeping assistance in a month, how much will they be charged?

Accepted Answer

. Franchisee's records shall include tax returns, daily reports, statements of Gross Revenues, profit and loss statements, sales tax information and balance sheets. Franchisee is required to exclusively use the bookkeeping services that Franchisor designates, which may be provided by Franchisor or its affiliates. Franchisee is required to pay the thencurrent bookkeeping services fee ("Bookkeeping Services Fee") at the same time and in the same manner as the Royalty Fees. As of the date of this Agreement, the Bookkeeping Services Fee is \$350 per month, but Franchisor may increase it at any time upon notice to you to be up to \$500 per month. The Bookkeeping Services Fee covers up to 5 hours of bookkeeping assistance per month; however, if Franchisee requires more than 5 hours of bookkeeping assistance per month, then Franchisor will charg

Source: Item 22 — CONTRACTS (FDD page 53)

Question 59

If a Bumble Roofing franchisee satisfies the preconditions, is Bumble Roofing obligated to offer a renewal term?

Accepted Answer

| Provision                                                                    | Section in Franchise Agreement or Other Agreement | Summary                                                                                                                                                                                                                                                        |
|------------------------------------------------------------------------------|------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| S. | Modification of the agreement | Sections 2.3, 7.3 & 20.11 of Franchise Agreement | Franchise Agreement: No modifications of Franchise Agreement during term unless mutually agreed upon in writing, but Operating Manual subject to change.  Modifications permitted on renewal. |

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–45)

Question 60

If a Bumble Roofing franchisee signs the Aggregate Reporting addendum, can they operate from a single location?

Accepted Answer

If you operate Roofing Businesses in multiple contiguous Territories in the same market under separate Franchise Agreements, then you will be permitted sign our then-current Aggregate Reporting addendum (currently attached as an exhibit to the Franchise Agreement), which addresses certain overlap under the separate franchise agreements, such as being able to operate the Franchised Business from a single location or submitting one royalty report for all of your Franchised Businesses that operate from a single business location.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENT, PREDECESSORS AND AFFILIATES (FDD pages 8–13)

Question 61

If a Bumble Roofing franchisee signs the Aggregate Reporting addendum, can they submit one royalty report for multiple businesses?

Accepted Answer

If you operate Roofing Businesses in multiple contiguous Territories in the same market under separate Franchise Agreements, then you will be permitted sign our then-current Aggregate Reporting addendum (currently attached as an exhibit to the Franchise Agreement), which addresses certain overlap under the separate franchise agreements, such as being able to operate the Franchised Business from a single location or submitting one royalty report for all of your Franchised Businesses that operate from a single business location.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENT, PREDECESSORS AND AFFILIATES (FDD pages 8–13)

Question 62

If a Bumble Roofing franchisee signs a Successor Franchise Agreement, will they be required to pay the National Branding & Marketing Fee?

Accepted Answer

If Franchisee signs a Successor Franchise Agreement, Franchisee will be required to pay the National Branding & Marketing Fee set forth therein.

Franchisor has the right, however, to vary the National Branding & Marketing Fee and how it is determined in any Successor Franchise Agreement Franchisee may sign.

Source: Item 22 — CONTRACTS (FDD page 53)

Question 63

If a Bumble Roofing franchisee's business grows, what might be required regarding service trucks?

Accepted Answer

You must lease or buy service trucks that are large and durable enough to accommodate our standard complement of equipment, tools and accessories. While we currently specify the options of make(s) and model(s) of truck you must acquire or lease, we do not specify the source from which you must acquire or lease it provided it meets our specifications. Your truck(s) must be in good working condition and be outfitted with our trade dress so that they will look the same as other franchisees' trucks when emblazoned with the BUMBLE ROOFING® name, logo and decorations. As your Roofing Business grows, you may require additional trucks.

The vehicle graphics package, ladder, roofing samples, and various tools and equipment are Required Items that you must currently purchase from us.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–29)

Question 64

If a ground for default or termination stated in the Bumble Roofing franchise agreement does not constitute 'reasonable cause' under Virginia law, what is the consequence?

Accepted Answer

"According to Section 13.1 – 564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in the franchise agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable."

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–45)

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