factual

Does the Bumble Roofing franchisor have the right to determine what constitutes the prime season of the business?

Bumble_Roofing Franchise · 2025 FDD

Answer from 2025 FDD Document

For the purposes of this Section 8.5(b), a 33% decrease in sales from the average sales in the prior 12 months would be considered a material reduction in sales (subject to seasonal factors that may be applicable to the Territory), and a 20% reduction in profitability from the average profitability during the previous 12 months (subject to seasonal factors that may be applicable to the Territory) would be considered a material reduction in profitability based on a forecast developed by Franchisee in good faith and approved by Franchisor in its sole discretion.

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2025 FDD)

Based on the 2025 Bumble Roofing Franchise Disclosure Document, the franchisor's discretion regarding seasonal factors appears in the context of evaluating a franchisee's request to opt out of offering new services or products. Specifically, if a franchisee believes that a new offering would lead to a material reduction in sales or profitability, the franchisor will consider seasonal factors when assessing the validity of that claim.

According to the FDD, a "material reduction in sales" is defined as a 33% decrease from the average sales in the prior 12 months, subject to seasonal factors applicable to the territory. Similarly, a 20% reduction in profitability from the average profitability during the previous 12 months is also considered material, again subject to seasonal factors. The franchisee must develop a forecast in good faith, which the franchisor then approves at its sole discretion.

This clause suggests that while Bumble Roofing franchisees can present evidence of potential negative impacts from new offerings, the franchisor ultimately decides whether seasonal factors justify the franchisee's concerns. This could be a point of negotiation or clarification for potential franchisees, especially those in regions with highly variable weather patterns or seasonal demand for roofing services. Franchisees should seek clarity on how these seasonal factors are determined and documented to ensure fair evaluation of their business conditions.

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.