What is the minimum amount Bumble Roofing franchisees must spend on advertising after the first year of operations?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 6 OTHER FEES
| Type of Fee | A | mount | Due Date | Remarks | |
|---|---|---|---|---|---|
| You must pay us a calendar year-to-da to: Year-to-Date Gross Revenue | Royalty Percentage | Payable to us. See Note 1 for a chart of Minimum Royalties and Note 2 for the definition of Gross Revenues. | |||
| $0 to $2,000,000 | 6.5% | Payable monthly on | If applicable, and at our discretion, the Minimum Royalty may be abated during | ||
| Royalty Fee | $2,000,001 to $5,000,000 $5,000,001 and above Beginning 7-months after opening, the Royalty payable will be equal to the greater of: (a) the amount described in the table above based on year-to-date Gross Revenue; or (b) the A minimum of $65 | 5.5% 4.5% | or before the 5 th day of each month to install roofing. | certain months of the year due to seasonal factors in your Territory. We will determine if seasonal factors apply to your Territory in our sole discretion. Seasonal factors apply to winter weather states in which adverse weather conditions do not allow franchisees | |
| Individual | months of operation $15,000 for each act Territory. | ns, plus an addit | ional | Payable to third-party suppliers or to us for payment directly to National Account | |
| Advertising | After the first year of operations, you must spend each year the greater of (a) $65,000 plus an additional $15,000 for each | As incurred | vendors where required. All advertising must be approved by us prior to publications or use. See Note 3. | ||
| Investment | additional contiguous Territory, or (b) 5% of the prior year's Gross Revenues. | ||||
| Opening Advertising | Minimum of $20,000 over the six-month period commencing as of the month prior to opening and continuing for the five months after opening. |
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, after the first year of operations, franchisees must spend a minimum amount on advertising each year. This amount is determined by whichever is greater: a fixed amount of $65,000 plus an additional $15,000 for each additional contiguous territory, or 5% of the prior year's gross revenues. This advertising investment must adhere to Bumble Roofing's standards and specifications.
This advertising investment is payable to third-party suppliers or to Bumble Roofing for payment directly to National Account vendors where required. All advertising materials must be approved by Bumble Roofing before publication or use. Franchisees are required to submit monthly or annual reports to Bumble Roofing, detailing their advertising expenditures.
The FDD specifies that there is no maximum amount that franchisees must spend on advertising. This provides flexibility for franchisees who wish to invest more in marketing to grow their business. However, it's important to note that all advertising materials, including those developed by the franchisee, must be approved in writing by Bumble Roofing, and approval can be withheld at their discretion.
Prospective franchisees should carefully consider these advertising requirements and factor them into their financial projections. They should also discuss with Bumble Roofing the types of advertising expenditures that are typically approved and the process for obtaining approval for new marketing materials.