What must a Bumble Roofing franchisee furnish to the franchisor regarding their Individual Advertising Investment expenditures?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.2 During the Initial Term and any Interim Period, Franchisee shall furnish each month and/or year, as Franchisor prescribes, and upon Franchisor's request, to Franchisor an accounting of Franchisee's previous month's or year's Individual Advertising Investment expenditures on a form approved by Franchisor. Franchisor has the right, but not the obligation, once Franchisee commences operations, to collect up to the minimum required Individual Advertising Investment from Franchisee and administer it on marketing and advertising investments in Franchisee's Territory on Franchisee's behalf.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, franchisees must provide the franchisor with an accounting of their Individual Advertising Investment expenditures. This accounting must be furnished monthly or yearly, as prescribed by Bumble Roofing, and upon the franchisor's request. The accounting must be submitted on a form approved by Bumble Roofing.
This requirement allows Bumble Roofing to monitor whether franchisees are meeting their advertising obligations, which are crucial for building brand awareness and driving business to the local franchise. During the first 12 months of operation, a Bumble Roofing franchisee must spend a minimum of $65,000 on promotional advertising within their territory. This amount increases by $15,000 for each additional contiguous territory. After the first year, the franchisee must spend the greater of $65,000 (plus $15,000 per additional contiguous territory) or 5% of the prior year's gross revenues.
Bumble Roofing also retains the right, but not the obligation, to collect the minimum required Individual Advertising Investment from the franchisee and administer it on marketing and advertising investments within the franchisee's territory on the franchisee's behalf. This provides Bumble Roofing with control over local advertising efforts, ensuring that the funds are used effectively to promote the Bumble Roofing brand. Franchisees do not have the liberty to use advertising materials without prior written approval from Bumble Roofing.
For a prospective Bumble Roofing franchisee, this means maintaining detailed records of all advertising expenditures and being prepared to submit them to the franchisor regularly. Franchisees should also be aware that Bumble Roofing could potentially take control of their advertising budget, which could be a benefit or a drawback depending on the franchisee's marketing expertise and preferences. Franchisees must also use advertising and promotion materials for the Business that are used by Franchisor and other BUMBLE ROOFING® franchisees.