When are 'Gross Revenues' deemed received by a Bumble Roofing franchisee, regardless of actual payment?

According to Bumble Roofing's 2025 Franchise Disclosure Document, gross revenues are considered received by the franchisee when the services or products are delivered or rendered, or when the relevant sale takes place, whichever comes first. This is the case regardless of whether the franchisee has actually received final payment from the customer. If the gross revenues are in the form of property or services, they will be valued at the retail prices in effect at the time they are received.

This definition is important for Bumble Roofing franchisees because it affects when royalties and other fees are calculated and due to the franchisor. Even if a customer has not yet paid, the franchisee is still responsible for paying royalties on the revenue as soon as the service is provided. This could create a cash flow challenge for franchisees if they have a significant amount of outstanding invoices.

It is important to note what is excluded from gross revenues. These exclusions include taxes imposed directly on sales and collected from customers, provided the tax amount is shown separately and paid to the appropriate authority. Also excluded are customer refunds, valid discounts and coupons, and credits made by the Roofing Business. However, reductions for credit card user fees, financing program fees, returned checks, or reserves for bad credit or doubtful accounts are not excluded from gross revenues.

Prospective Bumble Roofing franchisees should carefully consider this definition of gross revenues and how it will impact their financial planning and cash flow management. Understanding when revenue is recognized for royalty purposes, regardless of actual payment, is crucial for budgeting and maintaining a healthy financial relationship with the franchisor.