Does Bumble Roofing have the right to collect and administer the minimum required Individual Advertising Investment from the franchisee, and if so, is it obligated to do so?

According to Bumble Roofing's 2025 Franchise Disclosure Document, Bumble Roofing has the right to collect the minimum required Individual Advertising Investment from its franchisees but is not obligated to do so. Specifically, Bumble Roofing has the right, but not the obligation, to collect up to the minimum required Individual Advertising Investment from the franchisee and administer it on marketing and advertising investments in the franchisee's territory on the franchisee's behalf, once the franchisee commences operations.

During the first twelve months of operations, a Bumble Roofing franchisee must spend a minimum of $65,000 on promotional advertising within their territory, which is referred to as the "Individual Advertising Investment." This amount increases by $15,000 for each additional contiguous territory. After the first year, the franchisee must spend annually the greater of $65,000 (plus $15,000 per additional contiguous territory) or 5% of the prior year's gross revenues.

Franchisees are required to furnish Bumble Roofing with an accounting of their Individual Advertising Investment expenditures on a form approved by Bumble Roofing, either monthly or annually, as prescribed by Bumble Roofing. This accounting allows Bumble Roofing to monitor the franchisee's compliance with the advertising requirements and provides the basis for Bumble Roofing to potentially collect and administer the funds, should they choose to do so. Bumble Roofing also makes available advertising and promotion materials for the Business which are used by Bumble Roofing and other BUMBLE ROOFING® franchisees.