What is included in the calculation of 'Gross Revenues' for a Bumble Roofing franchise?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
" shall mean the business operations conducted or to be conducted using Franchisor's System and in association with the Marks.
- (f) "Gross Revenues" means the total of all receipts derived from all sales of products and services in connection with Franchisee's Roofing Business, including, without limitation, labor, insurance claims for lost profits to the extent a claim is paid by the insurer, and all other products and services sold or performed by or for Franchisee or Franchisee's Roofing Business or by means of the business conducted under this Agreement, whether the receipts are evidenced by cash, credit, checks, gift certificates, scrip, coupons, services, property or other means of exchange. Gross Revenues do not include:
- (i) the amount of any tax imposed by any federal, state, municipal or other governmental authority directly on sales and collected from customers, provided that the amount of any such tax is shown separately and in fact paid by Franchisee to the appropriate governmental authority; and
- (ii) all customer refunds, valid discounts and coupons, and credits made by the Roofing Business (exclusions will not include any reductions for credit card user fees, financing program fees, returned checks or reserves for bad credit or doubtful accounts).
Gross Revenues shall be deemed received by Franchisee at the time the services or products from which they were derived, are delivered or rendered or at the time the relevant sale takes place, whichever occurs first, regardless of whether final payment (e.g., collection on a customer's personal check) actually has been received by Franchisee. Gross Revenues consisting of property or services shall be valued at the retail prices applicable and in effect at the time that they are received.
- (g) "
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, 'Gross Revenues' for a franchisee include the total income from all sales of products and services related to the Roofing Business. This encompasses labor, insurance claims paid for lost profits, and revenue from all other products and services sold or performed by the franchisee's business. These revenues are included regardless of whether they are received in the form of cash, credit, checks, gift certificates, scrip, coupons, services, property, or other means of exchange.
Gross Revenues are considered received when the services or products are delivered or rendered, or when the sale takes place, whichever happens first. This is true regardless of whether the final payment has been collected. If the Gross Revenues are in the form of property or services, they are valued at the retail prices in effect at the time they are received.
However, the calculation of Gross Revenues for a Bumble Roofing franchise does not include certain items. Specifically excluded are taxes imposed by governmental authorities on sales that are collected from customers, provided these taxes are shown separately and paid to the appropriate authority. Also excluded are customer refunds, valid discounts and coupons, and credits made by the Roofing Business. 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.
Understanding what constitutes Gross Revenues is crucial for Bumble Roofing franchisees, as it directly impacts royalty payments and advertising expenditure requirements. Franchisees need to accurately track and report their revenues, keeping in mind the inclusions and exclusions as defined in the Franchise Agreement. This ensures compliance with the agreement and avoids potential disputes with Bumble Roofing.