factual

What factors does Bumble Roofing consider when defining a franchisee's Territory?

Bumble_Roofing Franchise · 2025 FDD

Answer from 2025 FDD Document

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ITEM 12 TERRITORY

Franchise Agreement

You will be granted a Territory in which to operate the Roofing Business under the Franchise Agreement. Your Territory is based on demographics and other characteristics including single-family household density, home values, average income and other characteristics of the surrounding area, natural boundaries, extent of competition and the amount and size of urban, suburban and rural areas. We will grant only one license to a franchisee for up to 100,000 single-family households in the designated geographical location ("Household Limit"). If you are granted a Territory in excess of the Household Limit, then you will need to pay us an Additional Household Fee, which equals $0.25 per single-family household in the Territory in excess of 100,000 single-family households. We will use the most recent population information available in the U.S. Census Data, or other statistical sources of our choosing to determine single-family household counts and densities. You will maintain rights to your Territory even though the count of single-family households in your Territory may increase or decrease. We have the exclusive right to determine the boundaries of your Territory in our sole discretion. We reserve the right to change, modify, or delete the Household Limit in our sole discretion. We will use our business judgment to determine whether the Household Limit makes good business sense for us and all of our franchisees. Enforcing the Household Limit may not be practical when considering limitations on geography, housing availability, natural physical boundaries and population and demographic shifts. In the event that utilizing a Household Limit does not make good business sense as determined by us we may delete the Household Limit in our sole discretion.

You may not relocate your Territory or establish additional Roofing Businesses without our prior written consent, which we may withhold in our sole discretion.

Source: Item 12 — TERRITORY (FDD pages 37–39)

What This Means (2025 FDD)

According to Bumble Roofing's 2025 Franchise Disclosure Document, the territory granted to a franchisee is determined by several demographic and geographic factors. These include single-family household density, home values, average income, and other characteristics of the surrounding area. Bumble Roofing also considers natural boundaries, the extent of competition, and the mix of urban, suburban, and rural areas within the potential territory.

Bumble Roofing typically grants one license per territory, aiming for a Household Limit of up to 100,000 single-family households. If a territory exceeds this limit, the franchisee must pay an Additional Household Fee of $0.25 per household above the 100,000 threshold. The franchisor uses U.S. Census Data or other statistical sources to determine household counts and densities. While franchisees maintain rights to their territory even if household counts change, Bumble Roofing retains the exclusive right to define and modify territory boundaries and the Household Limit at its discretion.

It's important to note that Bumble Roofing does not grant exclusive territories. Franchisees may face competition from other franchisees, company-owned outlets, or other distribution channels and competitive brands controlled by Bumble Roofing. The franchisor also reserves various rights, such as operating businesses outside the territory and using the brand to sell products through alternative channels, without compensating the franchisee. These factors highlight the importance of carefully evaluating the competitive landscape and potential limitations on territory exclusivity before investing in a Bumble Roofing franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.