Does Bumble Roofing have the right to collect and administer the Individual Advertising Investment on behalf of the franchisee?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
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You must invest a minimum of $65,000 ("Individual Advertising Investment") for marketing purposes in your Territory during the first 12 months of operations, plus an additional $15,000 for each additional contiguous Territory. The Individual Advertising Investment must be used by you for local advertising, to be selected and placed by you, in your Territory. These funds are reserved only for marketing, promotions and advertising of your Roofing Business. You may not advertise outside your Territory without our approval, which may be withheld in our sole discretion. You must submit proof of your Individual Advertising Investment expenditures to us in the frequency we prescribe (which may be monthly and/or annually), and upon our request. You must obtain our prior written approval of all of your marketing, promotional and advertising materials. We have the right, but not the obligation, to collect up to the minimum required Individual Advertising Investment from you and administer it on marketing and advertising investments in your Territory on your behalf. After the first year of operations, you must spend each year the greater of (a) $65,000 plus an additional $15,000 for each additional contiguous Territory, or (b) 5% o
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 30–37)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, Bumble Roofing has the right, but not the obligation, to collect the minimum required Individual Advertising Investment from franchisees and administer it on marketing and advertising investments in the franchisee's territory on their behalf.
The Individual Advertising Investment requires franchisees to invest a minimum of $65,000 for marketing purposes in their territory during the first 12 months of operations, plus an additional $15,000 for each additional contiguous territory. Franchisees are responsible for selecting and placing local advertising within their territory using these funds, which are specifically reserved for marketing, promotions, and advertising of their Bumble Roofing business. Franchisees must obtain Bumble Roofing's prior written approval of all marketing materials and provide proof of expenditures upon request.
After the first year, franchisees must spend annually the greater of (a) $65,000 plus $15,000 for each additional contiguous territory, or (b) 5% of the prior year's Gross Revenues. This ensures a continued investment in local marketing efforts, although the franchisee has the autonomy to manage these funds unless Bumble Roofing chooses to administer them directly. Bumble Roofing also collects a National Branding & Marketing Fee equal to 1% of Gross Revenues, which may be increased up to a maximum of 2% of Gross Revenues.