What is the Bumble Roofing franchisee's obligation to report their Individual Advertising Investment expenditures to the franchisor, and how frequently must this be done?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
authorize Franchisee to utilize any Improvement that may be developed by other franchisees and is authorized generally for use by other franchisees.
11. ADVERTISING AND PROMOTION
- 11.1 Franchisee acknowledges that local marketing, promotion and advertising are required to advise the public of the Business. During the first twelve (12) months of operations, Franchisee will spend a minimum of $65,000 on promotional advertising within the Territory ("Individual Advertising Investment"), plus an additional $15,000 for each additional contiguous Territory. Franchisee may not advertise outside its Territory without Franchisor's approval, which may be granted or withheld in Franchisor's discretion. After the first year of 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. Franchisor has the right, but not the obligation, once Franchisee commences operations, to collect
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, franchisees are required to engage in local marketing, promotion, and advertising to inform the public about their Bumble Roofing business. During the initial 12 months of operation, a franchisee must spend a minimum of $65,000 on promotional advertising within their territory, termed the "Individual Advertising Investment." This minimum increases by $15,000 for each additional contiguous territory. After the first year, the franchisee must spend annually the greater of either $65,000 plus $15,000 per additional contiguous territory, or 5% of the prior year's gross revenues.
During the Initial Term and any Interim Period, the Bumble Roofing franchisee is obligated to furnish an accounting of their Individual Advertising Investment expenditures to Bumble Roofing. The frequency of these reports is determined by Bumble Roofing, which may prescribe monthly and/or yearly submissions. These reports must be submitted on a form approved by Bumble Roofing.
Bumble Roofing retains the right, but not the obligation, to collect up to the minimum required Individual Advertising Investment from the franchisee and manage these funds for marketing and advertising investments within the franchisee's territory on their behalf. This provides Bumble Roofing with the option to directly control and administer local advertising efforts, ensuring brand consistency and potentially leveraging economies of scale. Franchisees should clarify with Bumble Roofing the specific reporting frequency and the approved form for submitting their advertising expenditure accountings.