When are Gross Revenues deemed received by the franchisee for a Bumble Roofing franchise?
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.
For a prospective Bumble Roofing franchisee, this means that royalty fees and other percentage-based fees will be calculated based on the date of service or sale, not when the customer pays. This is a common practice in franchising, as it simplifies accounting and ensures consistent revenue reporting.
This policy has implications for cash flow management. A Bumble Roofing franchisee will need to ensure they have sufficient funds to cover royalty payments even if customers have not yet paid for the services rendered. It is important to factor in potential delays in customer payments when forecasting revenue and expenses.