What is the Individual Advertising Investment for a Bumble Roofing franchise used for?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
ing.
You must invest a minimum of $65,000 ("Individual Advertising Investment") for marketing purposes in your Territory during the first 12 months of operations, plus an additional $15,000 for each additional contiguous Territory. The Individual Advertising Investment must be used by you for local advertising, to be selected and placed by you, in your Territory. These funds are reserved only for marketing, promotions and advertising of your Roofing Business. You may not advertise outside your Territory without our approval, which may be withheld in our sole discretion. You must submit proof of your Individual Advertising Investment expenditures to us in the frequency we prescribe (which may be monthly and/or annually), and upon our request. You must obtain our prior written approval of all of your marketing, promotional and advertising materials. We have the right, but not the obligation, to collect up to the minimum required Individual Advertising Investment from you and administer it on marketing and advertising investments in your Territory on your behalf. After the first year of operations, you must spend each year the greater of (a) $65,000 plus an additional $15,000 for each additional contiguous Territory, or (b) 5% o
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 30–37)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, franchisees must invest a minimum of $65,000 as an Individual Advertising Investment during their first 12 months of operation. If a franchisee purchases additional contiguous territories, they must invest an additional $15,000 per territory. These funds are specifically designated for local advertising, promotions, and marketing of the Bumble Roofing business within the franchisee's territory.
The Individual Advertising Investment is to be used at the franchisee's discretion for advertising within their territory. However, Bumble Roofing requires franchisees to obtain prior written approval for all marketing, promotional, and advertising materials. Bumble Roofing also retains the right to collect the minimum required Individual Advertising Investment from the franchisee and administer it on their behalf for marketing and advertising investments in the franchisee's territory.
After the initial year, Bumble Roofing franchisees must spend annually the greater of (a) $65,000 plus $15,000 for each additional contiguous territory, or (b) 5% of the prior year's gross revenues. Franchisees must also provide proof of their Individual Advertising Investment expenditures to Bumble Roofing, with the frequency to be determined by the franchisor.
This advertising requirement ensures that each Bumble Roofing franchisee actively promotes their business locally, while also allowing Bumble Roofing to maintain some control over the brand's image and marketing strategies. The franchisor also has the option to take over the advertising investment on behalf of the franchisee. This could be beneficial for franchisees who may lack marketing expertise or prefer to have the franchisor handle these activities.