Under what conditions does Bumble Roofing charge an audit fee?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee | Greater of 20% of then-current Franchise Fee or $10,000. | 50% due at the time the request to transfer is made. This amount is non-refundable. The balance is due at the closing of the transfer | See Note 6. |
| Audit | Cost of the audit plus related expenses, provided that the costs of the audit are only due if an irregularity of greater than 5% is discovered in any reported amount, or if reports are not submitted as required. | As incurred | We have the right under the Franchise Agreement to examine certain records including without limitation your financials, bank statements and tax returns. If an examination of these records reveals a discrepancy of more than 5% the full amount of the audit's actual costs will be charged in addition to any unpaid amounts discovered and other remedies as permitted under the Agreement. |
| Successor Franchise | Greater of 25% of the Franchise Fee or $5,000 per Territory | Upon executing the then-current successor Franchise Agreement | |
| Fee | |||
| Insurance |
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, Bumble Roofing has the right to examine a franchisee's records, including financial statements, bank statements, and tax returns.
Bumble Roofing will charge the franchisee for the cost of the audit plus related expenses if an irregularity of greater than 5% is discovered in any reported amount. The audit fee will also be charged if the franchisee does not submit reports as required.
In addition to the audit costs, Bumble Roofing may also charge any unpaid amounts discovered during the audit and pursue other remedies as permitted under the Franchise Agreement. This policy incentivizes franchisees to maintain accurate records and submit them on time.