How is the monthly gross revenue equivalent calculated for Bumble Roofing's minimum royalty?

According to Bumble Roofing's 2025 Franchise Disclosure Document, the monthly gross revenue equivalent is calculated to provide franchisees with an understanding of the revenue needed to meet the minimum royalty obligations. The monthly gross revenue equivalent is determined by dividing the minimum royalty by 6.5%. This calculation shows the amount of gross revenue a franchisee must generate for 6.5% of that revenue to equal the minimum royalty payment due to Bumble Roofing.

For example, during months 7-12 after opening, the minimum royalty is $1,000. The corresponding monthly gross revenue equivalent is $15,385. This means a franchisee needs to generate $15,385 in gross revenue for 6.5% of that amount to equal the $1,000 minimum royalty. Similarly, for months 13-24, with a minimum royalty of $1,500, the monthly gross revenue equivalent is $23,077. For months 25-36, with a minimum royalty of $1,750, the monthly gross revenue equivalent is $26,923. After month 37, with a minimum royalty of $2,000, the monthly gross revenue equivalent is $30,769.

It's important to note that these gross revenue equivalent figures are for convenience only and are not minimum sales requirements. The actual royalty fee is calculated as a percentage of gross revenues, with the minimum royalty acting as a floor. Gross revenues include all income from products and services sold through the franchise, including cash and credit sales, less refunds, and the fair market value of bartered services or products. Revenue is considered received when services or products are delivered or when the sale occurs, regardless of when final payment is received. There is no rollover credit for weeks in which the royalty amount exceeds the minimum.