What is the definition of 'Individual Advertising Investment' for a Bumble Roofing franchise?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
ing.
You must invest a minimum of $65,000 ("Individual Advertising Investment") for marketing purposes in your Territory during the first 12 months of operations, plus an additional $15,000 for each additional contiguous Territory. The Individual Advertising Investment must be used by you for local advertising, to be selected and placed by you, in your Territory. These funds are reserved only for marketing, promotions and advertising of your Roofing Business. You may not advertise outside your Territory without our approval, which may be withheld in our sole discretion. You must submit proof of your Individual Advertising Investment expenditures to us in the frequency we prescribe (which may be monthly and/or annually), and upon our request. You must obtain our prior written approval of all of your marketing, promotional and advertising materials. We have the right, but not the obligation, to collect up to the minimum required Individual Advertising Investment from you and administer it on marketing and advertising investments in your Territory on your behalf. After the first year of operations, you must spend each year the greater of (a) $65,000 plus an additional $15,000 for each additional contiguous Territory, or (b) 5% o
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 30–37)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the 'Individual Advertising Investment' refers to the minimum amount a franchisee must spend on local marketing during their first year of operation. Specifically, a new Bumble Roofing franchisee is required to invest a minimum of $65,000 for marketing purposes within their territory during the first 12 months. This investment increases by $15,000 for each additional contiguous territory the franchisee operates.
The FDD specifies that these funds must be used for local advertising, selected and placed by the franchisee within their designated territory. The purpose of this investment is to promote and advertise the franchisee's Bumble Roofing business. However, franchisees must obtain written approval from Bumble Roofing for all marketing, promotional, and advertising materials before use, and they are not allowed to advertise outside their territory without the franchisor's approval.
After the initial 12 months, the advertising requirement shifts to the greater of two options: either a fixed amount of $65,000 plus $15,000 for each additional contiguous territory, or 5% of the previous year's gross revenues. This ensures that advertising investment continues to align with the growth of the franchisee's business. Bumble Roofing also retains the right, but not the obligation, to collect the minimum required Individual Advertising Investment and manage the marketing and advertising investments in the franchisee's territory on their behalf. Franchisees are required to provide proof of their advertising expenditures to Bumble Roofing, with the frequency to be determined by the franchisor.