What is the 'Individual Advertising Investment' for a Bumble Roofing franchise?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
authorize Franchisee to utilize any Improvement that may be developed by other franchisees and is authorized generally for use by other franchisees.
11. ADVERTISING AND PROMOTION
- 11.1 Franchisee acknowledges that local marketing, promotion and advertising are required to advise the public of the Business. During the first twelve (12) months of operations, Franchisee will spend a minimum of $65,000 on promotional advertising within the Territory ("Individual Advertising Investment"), plus an additional $15,000 for each additional contiguous Territory. Franchisee may not advertise outside its Territory without Franchisor's approval, which may be granted or withheld in Franchisor's discretion. After the first year of operations, Franchisee must spend each year the greater of (a) $65,000 plus an additional $15,000 for each additional contiguous Territory, or (b) 5% of the prior year's Gross Revenues.
- 11.2 During the Initial Term and any Interim Period, Franchisee shall furnish each month and/or year, as Franchisor prescribes, and upon Franchisor's request, to Franchisor an accounting of Franchisee's previous month's or year's Individual Advertising Investment expenditures on a form approved by Franchisor. Franchisor has the right, but not the obligation, once Franchisee commences operations, to collect up to the minimum required Individual Advertising Investment from Franchisee and administer it on marketing and advertising investments in Franchisee's Territory on Franchisee's behalf.
- 11.3 Franchisor will make available to Franchisee all advertising and promotion materials for the Business wh
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, franchisees must invest in local marketing, promotion, and advertising to inform the public about their business. During the first year of operations, this 'Individual Advertising Investment' requires a minimum spend of $65,000 within the franchisee's territory. If a franchisee operates in more than one contiguous territory, they must spend an additional $15,000 for each additional territory. For example, if a Bumble Roofing franchisee operates in two contiguous territories, their minimum advertising spend for the first year would be $80,000 ($65,000 + $15,000).
After the first year, Bumble Roofing franchisees must spend annually the greater of two options: either (a) $65,000 plus $15,000 for each additional contiguous territory, or (b) 5% of the prior year's gross revenues. This ensures that advertising investment scales with the business's success. For instance, if a franchisee with one territory generated $1,000,000 in gross revenue in year one, they would need to spend $65,000 in year two, as it is greater than 5% of the previous year's gross revenue (which would be $50,000).
Bumble Roofing retains some control over advertising materials. Franchisees must use advertising and promotional materials provided by the franchisor and need written approval before developing their own. The franchisor may also share approved franchisee-developed materials with other franchisees. Bumble Roofing also has the right to collect the minimum required advertising investment from the franchisee and manage these funds for marketing and advertising investments within the franchisee's territory. This provides the franchisee with the benefit of the franchisor's expertise in marketing and advertising, but also means the franchisee has less control over how the money is spent.