Does the definition of 'Gross Revenues' for Bumble Roofing include insurance claims for lost profits?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) "Gross Revenues" means the total of all receipts derived from all sales of products and services in connection with Franchisee's Roofing Business, including, without limitation, labor, insurance claims for lost profits to the extent a claim is paid by the insurer, and all other products and services sold or performed by or for Franchisee or Franchisee's Roofing Business or by means of the business conducted under this Agreement, whether the receipts are evidenced by cash, credit, checks, gift certificates, scrip, coupons, services, property or other means of exchange.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, Gross Revenues include "insurance claims for lost profits to the extent a claim is paid by the insurer".
This means that when calculating the total revenue of a Bumble Roofing franchise for purposes such as royalty payments or advertising expenditure requirements, any insurance money received to cover lost profits must be included. This is contingent on the claim actually being paid out by the insurance provider.
For a prospective Bumble Roofing franchisee, this is an important consideration for financial planning and reporting. It clarifies that insurance payouts intended to compensate for lost revenue are not excluded from the gross revenue calculation, which could impact royalty fees owed to the franchisor and the amount required to be spent on advertising.