Under what circumstances might Bumble Roofing collect the minimum required Individual Advertising Investment from a franchisee?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
ing.
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
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, franchisees must invest a minimum of $65,000 for marketing purposes in their territory during the first 12 months of operations, with an additional $15,000 required for each contiguous territory. This investment, termed the "Individual Advertising Investment," is specifically for local advertising selected and implemented by the franchisee within their designated territory. These funds are strictly reserved for marketing, promotions, and advertising of the Bumble Roofing business.
However, Bumble Roofing retains the right, but not the obligation, to collect up to the minimum required Individual Advertising Investment from the franchisee and manage it on their behalf for marketing and advertising investments within the franchisee's territory. This means that while franchisees are typically responsible for managing their own local advertising, Bumble Roofing can step in and take control of these funds to administer the advertising efforts directly.
This provision provides Bumble Roofing with the flexibility to ensure that advertising funds are used effectively and in accordance with their brand standards. It also allows Bumble Roofing to assist franchisees who may lack the expertise or resources to manage their own advertising campaigns effectively. However, it's important for prospective franchisees to understand the circumstances under which Bumble Roofing might exercise this right and how it would impact their control over local marketing efforts. Franchisees are required to submit proof of their Individual Advertising Investment expenditures to Bumble Roofing in the frequency they prescribe (which may be monthly and/or annually), and upon their request. Franchisees must also obtain Bumble Roofing's prior written approval of all of their marketing, promotional and advertising materials.