What costs are included in the 'entire cost of the inspection or audit' that a Bumble Roofing franchisee may have to pay?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
Should any inspection or audit disclose a deficiency in the payment of any Royalty Fees, National Branding & Marketing Fee (as defined in Section 11.5) or other amounts required to be paid under this Agreement, Franchisee shall immediately pay the deficiency to Franchisor, without prejudice to any other remedy of Franchisor under this Agreement.
In addition, if the deficiency for any audit period discloses a deficiency in the amount of any Royalty Fee, National Branding & Marketing Fee or other amounts due by 5% or more, Franchisee will also immediately pay to Franchisor the entire cost of the inspection or audit including travel, lodging, meals, salaries and other expenses of the inspecting or auditing personnel.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, if an inspection or audit reveals a deficiency of 5% or more in the amount of Royalty Fees, National Branding & Marketing Fee, or other amounts due, the franchisee is responsible for covering the entire cost of the inspection or audit. This cost includes travel, lodging, meals, salaries, and other expenses incurred by the inspecting or auditing personnel.
This means that a Bumble Roofing franchisee could face significant and unexpected expenses if their records are not accurate and up-to-date. The franchisee is responsible for not only the deficiency itself, but also all costs associated with uncovering that deficiency.
Franchisees should maintain meticulous records and ensure timely and accurate payments to avoid triggering an audit and potentially incurring these additional costs. This provision incentivizes franchisees to be proactive in their financial management and transparent in their dealings with Bumble Roofing.