Is Bumble Roofing or its affiliates entitled to keep rebates or other consideration received from third-party designated and approved suppliers as a result of a franchisee's purchases of required items?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.4 Franchisee acknowledges and agrees that Franchisor and its Affiliates have the right to collect rebates and other consideration from third party designated and approved suppliers as a result of Franchisee's purchases of Required Items, and that Franchisor and its Affiliates shall be entitled to keep for their own use and account such rebates and consideration. Franchisee further acknowledges and agrees that Franchisor and its Affiliates may also derive revenue or other consideration from Franchisee's purchases of Required Items from Franchisor or its Affiliates.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, Bumble Roofing and its affiliates have the right to collect rebates and other considerations from third-party designated and approved suppliers resulting from a franchisee's purchases of required items. Bumble Roofing and its affiliates are entitled to keep these rebates and considerations for their own use and account.
Additionally, Bumble Roofing and its affiliates may also derive revenue or other consideration from a franchisee's purchases of required items directly from Bumble Roofing or its affiliates. This means that franchisees may not only be required to purchase certain items from approved suppliers, but Bumble Roofing also benefits financially from these purchases through rebates and potentially through direct sales.
This arrangement is common in franchising, where franchisors often negotiate rebates or discounts with suppliers based on the collective purchasing power of their franchisees. However, it's important for prospective Bumble Roofing franchisees to understand that they will not directly benefit from these rebates, as they are retained by the franchisor and its affiliates. Franchisees should consider this when evaluating the overall cost of goods and services required to operate the franchise.