Is a Bumble Roofing franchisee required to use a specific chart of accounts?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
operations, Franchisee must spend each year the greater of (a) $65,000 plus an additional $15,000 for each additional contiguous Territory, or (b) 5% of the prior year's Gross Revenues.
- 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.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, it is not clear whether Bumble Roofing requires franchisees to use a specific chart of accounts. The FDD does mention that franchisees must furnish an accounting of Individual Advertising Investment expenditures on a form approved by the franchisor. This suggests that Bumble Roofing has some requirements for how franchisees track and report their advertising expenses. However, the document does not explicitly state whether a specific chart of accounts is mandated for all financial reporting.
While the FDD does not provide explicit details regarding a required chart of accounts, it does state that franchisees must comply with the terms and fees of any software they are required to use. This could potentially include accounting software that has a pre-defined chart of accounts. Additionally, franchisees are obligated to maintain accurate records and provide information as required by Bumble Roofing, which could indirectly influence their accounting practices.
To gain clarity on this matter, prospective Bumble Roofing franchisees should directly inquire with the franchisor about whether a specific chart of accounts is mandatory. Understanding the franchisor's requirements for financial reporting and accounting practices is crucial for ensuring compliance and accurate financial management.