What does the 'Cost of Labor' specifically refer to for a Bumble Roofing affiliate unit?

According to Bumble Roofing's 2025 Franchise Disclosure Document, the 'Cost of Labor' specifically includes the expenses for subcontracted labor hired to install a roofing project. This means that Bumble Roofing franchisees should allocate the payments made to external contractors for the physical installation of roofing systems under this cost category. This is in contrast to 'Wages and Benefits', which covers the salaries, payroll taxes, and benefits for the four employees working directly on Roofing Services. These employees include two sales professionals, one production manager, and one office administrator.

Understanding this distinction is crucial for Bumble Roofing franchisees to accurately track and manage their expenses. By separating the costs of subcontracted labor from employee wages and benefits, franchisees can gain better insights into the profitability of each roofing project and the overall financial health of their business. This separation also helps in making informed decisions about staffing levels, pricing strategies, and project management.

For a prospective Bumble Roofing franchisee, it's important to note that the cost of labor can significantly impact the overall profitability of the business. Efficiently managing and negotiating rates with subcontractors is essential to maintaining healthy profit margins. Additionally, franchisees should carefully consider the trade-offs between using subcontractors and hiring additional employees, as each approach has its own cost and management implications.