Does Bumble Roofing have any direct or indirect liability or obligation to the Franchisee regarding the National Branding & Marketing Fund?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.9 Franchisor (and any designee of Franchisor) will have no direct or indirect liability or obligation to Franchisee or the National Branding & Marketing Fund or otherwise with respect to the management, maintenance, direction, administration or otherwise of the National Branding & Marketing Fund. Franchisee and Franchisor agree that their rights and obligations with respect to the National Branding & Marketing Fund and all related matters are governed solely by this Agreement and neither this Agreement or the National Branding & Marketing Fund creates a trust, fiduciary relationship, or similar arrangement.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, Bumble Roofing has no direct or indirect liability to the franchisee regarding the management, maintenance, direction, or administration of the National Branding & Marketing Fund. The agreement specifies that the rights and obligations related to the National Branding & Marketing Fund are governed solely by the franchise agreement itself. Furthermore, neither the agreement nor the National Branding & Marketing Fund creates a trust or fiduciary relationship between Bumble Roofing and the franchisee.
This means that franchisees cannot hold Bumble Roofing accountable for how the National Branding & Marketing Fund is managed or how its funds are spent. Bumble Roofing has sole discretion over these aspects. The franchisee's obligation is limited to paying the National Branding & Marketing Fee, which starts at 1% of Gross Revenue and can increase to a maximum of 2%.
This arrangement is common in franchising, where franchisors often control marketing funds to ensure consistent branding and advertising efforts across the system. However, it's crucial for prospective Bumble Roofing franchisees to understand that they have no say in how the fund is managed and no guarantee that the funds will be spent in a way that directly benefits their specific territory. Franchisees should be aware that the National Branding & Marketing Fees collected are non-refundable, and the fund may be terminated at any time by Bumble Roofing, in its sole discretion. In the event of termination, any remaining balance may be expended as provided or returned to the franchisee on a pro-rata basis.