Does Bumble Roofing or its affiliates receive fees, payments, rebates, commissions or other consideration from third-party manufacturers, suppliers and/or distributors?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
ngoing operating expenses.
We and our affiliates have the right to receive fees, payments, rebates, commissions or other consideration from third-party manufacturers, suppliers and/or distributors. The payment of any rebates or consideration may or may not be reasonably related to services we or our affiliates provide to these third parties. We and our affiliates may, and currently do, derive revenue or other consideration from your purchases of Required Items from us or our affiliates. These payments may range from less than 1% up to 10% or more of the total purchase price of those items. We and our affiliates will retain and use any fees, payments, rebates, commissions or other consideration as we deem appropriate or as required by a particular manufacturer, supplier or distributor.
During our last fiscal year, which ended September 30, 2024, based on internal records, we received $43,237 revenues from the sale of required products and services to our franchisees. These amounts represent 1.58% of the total $2,733,133.97 in revenue we received in connection with the BUMBLE ROOFING® system in the last fiscal year
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–29)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, Bumble Roofing and its affiliates have the right to receive fees, payments, rebates, commissions, or other consideration from third-party manufacturers, suppliers, and/or distributors. These payments may or may not be related to services Bumble Roofing or its affiliates provide to these third parties. Bumble Roofing and its affiliates may and currently do derive revenue or other consideration from a franchisee's purchases of required items from them. These payments can range from less than 1% up to 10% or more of the total purchase price of those items. Bumble Roofing and its affiliates will retain and use any fees, payments, rebates, commissions, or other consideration as they deem appropriate or as required by a particular manufacturer, supplier, or distributor.
For a prospective franchisee, this means that Bumble Roofing may profit not only from the initial franchise fee and ongoing royalties but also from the franchisee's purchases of required items. The FDD states that during the last fiscal year, which ended September 30, 2024, Bumble Roofing received $43,237 in revenues from the sale of required products and services to its franchisees. This amount represents 1.58% of the total $2,733,133.97 in revenue Bumble Roofing received in connection with the Bumble Roofing system in the last fiscal year ending September 30, 2024.
This arrangement is common in franchising, where franchisors often negotiate deals with suppliers to receive volume discounts or rebates, which can then be shared between the franchisor and the franchisee, or retained by the franchisor. While this can potentially lower costs for franchisees, it also creates a potential conflict of interest if Bumble Roofing prioritizes suppliers that offer the highest payments to them, rather than those that offer the best value or quality to franchisees. Franchisees should evaluate whether the required purchases are competitively priced and of reasonable quality.
Prospective franchisees should inquire about the specific suppliers Bumble Roofing has relationships with, the percentage of revenue Bumble Roofing receives from these suppliers, and how these relationships benefit the franchisees. Understanding these financial arrangements is crucial for assessing the overall cost and value proposition of the Bumble Roofing franchise.