Is the Bumble Roofing franchisor obligated to collect and administer the Individual Advertising Investment on behalf of the franchisee?
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, the franchisor is not obligated to collect and administer the Individual Advertising Investment on behalf of the franchisee. While franchisees are required to engage in local marketing, promotion, and advertising, especially within the first year of operation where a minimum of $65,000 must be spent on promotional advertising within their territory (plus an additional $15,000 for each contiguous territory), Bumble Roofing retains the right, but not the obligation, to collect the minimum required Individual Advertising Investment and administer it on the franchisee's behalf.
This means that a Bumble Roofing franchisee is primarily responsible for managing their own advertising investments. They must furnish an accounting of their Individual Advertising Investment expenditures to the franchisor monthly or yearly, as prescribed. The franchisor's right to collect and administer these funds provides a potential avenue for franchisees to have assistance with their advertising spend, but it is not guaranteed.
This flexibility allows Bumble Roofing to step in and manage advertising investments if they deem it necessary, but it also places the onus on the franchisee to handle these responsibilities effectively. Franchisees should be prepared to manage their advertising spend and provide regular reports to Bumble Roofing, understanding that the franchisor may or may not take on the administrative role of managing these funds directly.