When is the Bumble Roofing royalty fee payable?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 6 OTHER FEES
| Type of Fee | A | mount | Due Date | Remarks | |
|---|---|---|---|---|---|
| You must pay us a calendar year-to-da to: Year-to-Date Gross Revenue | Royalty Percentage | Payable to us. See Note 1 for a chart of Minimum Royalties and Note 2 for the definition of Gross Revenues. | |||
| $0 to $2,000,000 | 6.5% | Payable monthly on | If applicable, and at our discretion, the Minimum Royalty may be abated during | ||
| Royalty Fee | $2,000,001 to $5,000,000 $5,000,001 and above Beginning 7-months after opening, the Royalty payable will be equal to the greater of: (a) the amount described in the table above based on year-to-date Gross Revenue; or (b) the A minimum of $65 | 5.5% 4.5% | or before the 5 th day of each month to install roofing. | certain months of the year due to seasonal factors in your Territory. We will determine if seasonal factors apply to your Territory in our sole discretion. Seasonal factors apply to winter weather states in which adverse weather conditions do not allow franchisees | |
| Individual | months of operation $15,000 for each act Territory. |
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the royalty fee is payable monthly on or before the 5th day of each month. This payment schedule begins seven months after the franchise opens. The royalty fee is calculated based on the year-to-date gross revenue, with different percentages applied to different revenue brackets. Specifically, the royalty is 6.5% for gross revenues from $0 to $2,000,000, 5.5% for revenues from $2,000,001 to $5,000,000, and 4.5% for revenues above $5,000,001.
Additionally, Bumble Roofing franchisees must pay a minimum royalty, which may be abated during certain months of the year due to seasonal factors, at the franchisor's discretion. The minimum royalty varies depending on the number of months the franchise has been open. For months 7-12, the minimum royalty is $1,000 per territory; for months 13-24, it is $1,500; for months 25-36, it is $1,750; and for months 37 and beyond, it is $2,000. The royalty payable will be equal to the greater of: (a) the amount described in the table above based on year-to-date Gross Revenue; or (b) the minimum royalty of $65 to install roofing.
Bumble Roofing also reserves the right to require franchisees to pay fees via electronic funds transfer. If the franchisee fails to make timely payments of the Royalty Fee and National Branding & Marketing Fees, Bumble Roofing is authorized to debit the franchisee's account for the amounts due. This means that franchisees need to ensure they have sufficient funds available for withdrawal by electronic transfer no later than the payment due date to avoid any penalties or disruptions.