When are Gross Revenues deemed received by a Bumble Roofing franchisee?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
As used in this chart, the term "Gross Revenues" means amounts derived from all products or services sold from or through your Franchise (across all Territories), including any sale of products or services made for cash or credit, or partly for cash and partly for credit, less refunds. "Gross Revenues" also includes the fair market value of any services or products received by you in barter or in exchange for services and products.
Gross Revenues are deemed received by the franchisee at the time the services or products are delivered or at the time the sale takes place, whatever occurs first, regardless if final payment has actually been received by the franchisee.
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, gross revenues are considered received when the services or products are delivered, or when the sale occurs, whichever happens first. This is the case regardless of whether the franchisee has actually received final payment.
This definition is important because Bumble Roofing calculates royalties and other fees based on gross revenues. Franchisees need to track when services are delivered or sales take place, not just when they receive payment, to accurately calculate and remit these fees. This could impact cash flow, as franchisees may need to pay royalties on revenue they haven't yet collected.
For example, if a Bumble Roofing franchisee completes a roofing job in January but doesn't receive payment from the customer until March, the revenue is still counted in January's gross revenue for royalty calculation purposes. This policy is fairly standard in franchising, as it ensures consistent revenue reporting and prevents franchisees from delaying royalty payments by delaying invoicing or collection efforts.