After the first year, what is the minimum annual advertising spend for a Bumble Roofing franchise?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
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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, after the first year of operations, a franchisee must spend annually the greater of two options for advertising. The first option is a fixed amount of $65,000, plus an additional $15,000 for each contiguous territory. The second option is 5% of the prior year's gross revenues.
This means that a Bumble Roofing franchisee's minimum advertising spend will vary depending on their gross revenues from the previous year and the number of contiguous territories they operate in. If a franchisee operates in only one territory and has low gross revenues, the $65,000 minimum will likely apply. However, a very successful franchisee with high gross revenues will likely be required to spend more than $65,000 due to the 5% of gross revenues requirement.
Prospective franchisees should carefully consider these advertising requirements and factor them into their financial projections. It is important to note that these are minimum spending requirements, and Bumble Roofing may encourage or require franchisees to spend more on advertising in certain circumstances. Additionally, franchisees must obtain Bumble Roofing's prior written approval of all marketing, promotional, and advertising materials.