Are reductions for financing program fees excluded from 'Gross Revenues' for a Bumble Roofing franchise?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
Gross Revenues do not include:
(i) the amount of any tax imposed by any federal, state, municipal or other governmental authority directly on sales and collected from customers, provided that the amount of any such tax is shown separately and in fact paid by Franchisee to the appropriate governmental authority; and
(ii) all customer refunds, valid discounts and coupons, and credits made by the Roofing Business (exclusions will not include any reductions for credit card user fees, financing program fees, returned checks or reserves for bad credit or doubtful accounts).
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, reductions for financing program fees are not excluded from the calculation of Gross Revenues. Gross Revenues for a Bumble Roofing franchise include all revenues from the business, but specifically exclude certain items.
The document specifies that Gross Revenues do not include taxes collected from customers and remitted to governmental authorities, provided these taxes are shown separately. Additionally, customer refunds, valid discounts and coupons, and credits are excluded from Gross Revenues.
However, the agreement explicitly states that reductions for credit card user fees, financing program fees, returned checks, or reserves for bad credit or doubtful accounts are NOT exclusions from Gross Revenues. This means that Bumble Roofing franchisees must include these amounts when calculating their Gross Revenues, which affects royalty payments and other financial obligations to the franchisor.