How is the Monthly Gross Revenue Equivalent calculated for a Bumble Roofing franchise?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- (i) The Monthly Gross Revenue Equivalent was calculated by dividing the Minimum Royalty by 6.5%.
This represents the amount that you would need to generate in order for 6.5% of Gross Revenue to equal the Minimum Royalty.
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the Monthly Gross Revenue Equivalent is calculated by dividing the Minimum Royalty by 6.5%. This calculation provides a benchmark for franchisees, indicating the amount of revenue they need to generate for 6.5% of their gross revenue to equal the Minimum Royalty.
For example, during months 7-12 after opening, the Minimum Royalty is $1,000. The Monthly Gross Revenue Equivalent is $15,385. This means a franchisee would need to generate $15,385 in gross revenue for 6.5% of that revenue to equal the $1,000 minimum royalty. Similarly, during months 13-24, with a Minimum Royalty of $1,500, the Monthly Gross Revenue Equivalent is $23,077.
The FDD specifies that these Gross Revenue Equivalent figures are for convenience only and are not minimum sales requirements. Gross Revenues include all income from products and services sold through the franchise, whether for cash, credit, or barter, less refunds. Revenue is considered received when the services or products are delivered or when the sale takes place, regardless of when final payment is received. There is no rollover credit if the royalty amount exceeds the minimum in any given week.