What is the National Branding & Marketing Fund for Bumble Roofing?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.4 Franchisor has formed a national branding and marketing fund ("National Branding & Marketing Fund").
Beginning on the Operational Start Date, Franchisee shall pay to Franchisor a monthly national branding and marketing fee equal to 1% of Gross Revenue, which may be increased by Franchisor up to a maximum of 2% of Gross Revenues ("National Branding & Marketing Fee").
The National Branding & Marketing Fee shall be payable to Franchisor on or before the same day as the Royalty Fee.
If Franchisee signs a Successor Franchise Agreement, Franchisee will be required to pay the National Branding & Marketing Fee set forth therein.
Franchisor has the right, however, to vary the National Branding & Marketing Fee and how it is determined in any Successor Franchise Agreement Franchisee may sign.
No action taken by Franchisor shall diminish Franchisee's obligations to pay the National Branding & Marketing Fee to the National Branding & Marketing Fund.
The National Branding & Marketing Fee is in addition to Franchisee's obligations in Section 11.1.
- 11.5 Advertising materials and services will be provided to Franchisee through the National Branding & Marketing Fund.
Franchisor may occasionally provide for placement of advertising on behalf of the entire System, including franchisees, or on behalf of a particular region, which may not include Franchisee, through the National Branding & Marketing Fund.
Franchisor reserves the right to use the National Branding & Marketing Fee from the National Branding & Marketing Fund to place advertising in national media or regional media (including broadcast, print, Internet or other media) in the future.
Franchisee acknowledges that the National Branding & Marketing Fund is intended to maximize the general brand recognition of the System.
Franchisor is not obligated to expend National Branding & Marketing Funds on Franchisee's behalf or benefit or expend National Branding & Marketing Funds equivalent or proportionate to Franchisee's National Branding & Marketing Fees on Franchisee's behalf or benefit.
- 11.6 National advertising, public relations, and promotions will be started and continued by Franchisor, when, in Franchisor's sole discretion, Franchisor deems that it has accumulated sufficient moneys for that purpose.
The National Branding & Marketing Fund will be used to promote the System, Services and/or Products sold by the franchisees and will not be used to sell additional franchises.
Franchisor's accounting and marketing personnel or a representative designated by Franchisor will administer the National Branding & Marketing Fund.
The National Branding & Marketing Fund will collect National Branding & Marketing Fees from all franchisees.
All payments to the National Branding & Marketing Fund must be spent on advertising, public relations, market research, promotion, marketing of goods and services provided by Franchisor, outside vendors, including but not limited to marketing agencies, and administration of the National Branding & Marketing Fund, including but not limited to, salaries, overhead, administrative, accounting, collection and legal costs and expenses.
The National Branding & Marketing Funds will be maintained by Franchisor in a separate account.
An annual un-audited financial statement of the National Branding & Marketing Fund, at the expense of the National Branding & Marketing Fund, will be available 120 days after Franchisor's fiscal year end to Franchisee for review once a year upon request.
- 11.7 The National Branding & Marketing Fees collected by the National Branding & Marketing Fund are non-refundable.
The National Branding & Marketing Fund may be terminated at any time by Franchisor, in its sole discretion.
In the event that the National Branding & Marketing Fund is terminated, any remaining balance in the National Branding & Marketing Fund will be expended as provided for in Section 11.7 or returned to Franchisee on a pro-rata basis.
- 11.8 Franchisee shall fully participate in all such promotional campaigns, prize contests, special offers, and other programs, national, regional, or local in nature (including the introduction of new Services,
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the company has established a National Branding & Marketing Fund. Franchisees are required to contribute to this fund, beginning on the Operational Start Date, by paying a monthly fee equal to 1% of Gross Revenue. This fee can be increased by Bumble Roofing up to a maximum of 2% of Gross Revenues. This National Branding & Marketing Fee is payable on the same day as the Royalty Fee and is in addition to the franchisee's individual advertising obligations.
The purpose of the National Branding & Marketing Fund is to maximize brand recognition for the Bumble Roofing system. The funds collected will be used for advertising, public relations, market research, promotion, and marketing of goods and services provided by Bumble Roofing. It also covers the costs of outside vendors, marketing agencies, and the administration of the fund itself, including salaries, overhead, accounting, and legal expenses. Bumble Roofing retains control over how the funds are spent and is not obligated to spend the fees in proportion to a franchisee's contribution or for their direct benefit.
Bumble Roofing will administer the National Branding & Marketing Fund through its accounting and marketing personnel or a designated representative. The funds will be maintained in a separate account. Franchisees are entitled to review an annual, unaudited financial statement of the fund, available 120 days after Bumble Roofing's fiscal year end, upon request, once per year. The fees paid into the fund are non-refundable. Bumble Roofing also reserves the right to terminate the fund at its discretion, and in such case, any remaining balance will be used as intended or returned to franchisees on a pro-rata basis.
As a prospective Bumble Roofing franchisee, it's important to understand that participation in national advertising and promotional campaigns is mandatory. The franchisor will initiate and continue these efforts when sufficient funds have accumulated, in their sole discretion. Furthermore, franchisees should be aware that Bumble Roofing retains significant control over internet marketing and the use of trademarks online.