What must accompany each Royalty Fees payment to Bumble Roofing?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Royalty Fees payment will be accompanied by a report as set forth in Section 5.4(a).
- (a) Each Royalty Fees payment shall be, without exception, accompanied by a statement of the previous month's Gross Revenues on a form approved and provided to Franchisee by Franchisor.
Each failure to include a fully completed statement of the previous month's Gross Revenues with the Royalty Fees payable to Franchisor when due shall constitute a material breach of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, each royalty fee payment must be accompanied by a statement of the previous month's gross revenues. This statement must be on a form approved and provided by Bumble Roofing.
The requirement to submit a gross revenue statement with each royalty payment ensures that Bumble Roofing can accurately verify the franchisee's sales figures and calculate the correct royalty amount. This is a standard practice in franchising, as royalty fees are typically calculated as a percentage of gross revenues.
Failure to include the fully completed statement of gross revenues with the royalty fee payment constitutes a material breach of the franchise agreement. This highlights the importance of adhering to this requirement to avoid potential penalties or legal issues with Bumble Roofing. Franchisees should ensure they understand the format and requirements for the gross revenue statement to maintain compliance with the franchise agreement.