What is the range of payments that Bumble Roofing and its affiliates may receive from a franchisee's purchases of Required Items?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates have the right to receive fees, payments, rebates, commissions or other consideration from third-party manufacturers, suppliers and/or distributors. The payment of any rebates or consideration may or may not be reasonably related to services we or our affiliates provide to these third parties. We and our affiliates may, and currently do, derive revenue or other consideration from your purchases of Required Items from us or our affiliates. These payments may range from less than 1% up to 10% or more of the total purchase price of those items. We and our affiliates will retain and use any fees, payments, rebates, commissions or other consideration as we deem appropriate or as required by a particular manufacturer, supplier or distributor.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–29)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, Bumble Roofing and its affiliates may receive payments from a franchisee's purchases of Required Items. These payments can range from less than 1% up to 10% or more of the total purchase price of those items. Bumble Roofing retains and uses these fees, payments, rebates, commissions, or other consideration as they deem appropriate or as required by a particular manufacturer, supplier, or distributor.
This means that when a Bumble Roofing franchisee purchases required items, a portion of that purchase price may go back to Bumble Roofing or its affiliates. The amount can vary, but it's important for prospective franchisees to understand that these payments exist and can impact the overall cost of goods and services. Required Items include products, services, equipment, tools, office, vehicle, uniforms, inventory, supplies, forms, advertising materials, computer hardware and software, accounting systems, bookkeeping service, and/or other services and products used in, sold or provided through your Roofing Business.
It is typical in franchising for franchisors to receive some form of payment or consideration from required purchases. This revenue stream can help support the franchisor's operations and provide services to franchisees. However, franchisees should carefully consider the potential impact of these payments on their profitability and competitiveness. Understanding the specific Required Items and the potential range of payments is crucial for making an informed investment decision regarding a Bumble Roofing franchise.