Is Bumble Roofing liable for taxes levied upon the franchisee, the franchisee's property, or the business?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the franchisee is responsible for paying taxes. Bumble Roofing's Gross Revenues definition does not include the amount of any tax imposed by any federal, state, municipal or other governmental authority directly on sales and collected from customers. However, this exclusion is conditional.
The amount of any such tax must be shown separately and in fact paid by the franchisee to the appropriate governmental authority to be excluded from gross revenues. This means that Bumble Roofing franchisees are responsible for collecting and remitting sales taxes to the relevant authorities.
This is a standard practice in franchising, where franchisees typically bear the responsibility for all taxes related to their specific business operations. Prospective Bumble Roofing franchisees should ensure they understand their tax obligations and consult with a tax professional to ensure compliance with all applicable laws and regulations.