factual

When do Bumble Roofing franchisees begin paying minimum royalties?

Bumble_Roofing Franchise · 2025 FDD

Answer from 2025 FDD Document

  1. from the Effective Date of this Agreement; or (c), 20 Operational Start Date: The parties agree that the "Operational Start Date" for the franchise shall be the earlier of: (a) the date that Franchisee begins operation of its Business; (b) six (6) months Franchisee's obligations to make the Royalty and the National Branding & Marketing Fee shall commence on the Operational Start Date, even if Franchisee has not yet begun operating its Business.

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2025 FDD)

According to Bumble Roofing's 2025 Franchise Disclosure Document, franchisees are obligated to pay royalties starting from the Operational Start Date. The Operational Start Date is defined as whichever comes first: either the date the franchisee begins operating their Bumble Roofing business, or six months from the Effective Date of the Franchise Agreement. This means that even if a franchisee hasn't started operations, they must still begin paying royalties six months after signing the agreement.

This requirement has significant financial implications for prospective Bumble Roofing franchisees. It means franchisees need to be prepared to generate revenue quickly to cover these royalty obligations. If there are delays in setting up the business, the franchisee will still be responsible for royalty payments, potentially impacting their initial profitability.

Attachment A to the Franchise Agreement further clarifies that the franchisee's obligations to pay both the Royalty and the National Branding & Marketing Fee commence on the Operational Start Date, reinforcing that these payments are tied to the start date rather than actual business operations. Franchisees should carefully consider their timeline for launching their business to align with these payment obligations.

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.