What records can Bumble Roofing examine during an audit?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit | Cost of the audit plus related expenses, provided that the costs of the audit are only due if an irregularity of greater than 5% is discovered in any reported amount, or if reports are not submitted as required. | As incurred | We have the right under the Franchise Agreement to examine certain records including without limitation your financials, bank statements and tax returns. If an examination of these records reveals a discrepancy of more than 5% the full amount of the audit's actual costs will be charged in addition to any unpaid amounts discovered and other remedies as permitted under the Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, Bumble Roofing has the right to examine certain records during an audit. These records include, but are not limited to, the franchisee's financials, bank statements, and tax returns.
This means that as a Bumble Roofing franchisee, you must maintain accurate and complete financial records and be prepared to provide them to the franchisor if requested. The audit can occur if Bumble Roofing suspects any financial irregularities or if reports are not submitted as required.
It's important to note that if an audit reveals a discrepancy of more than 5% in any reported amount, the franchisee will be responsible for covering the full cost of the audit, in addition to any unpaid amounts discovered and other remedies as permitted under the Franchise Agreement. This provision incentivizes franchisees to maintain accurate financial reporting and comply with reporting requirements.