Under what conditions might the Bumble Roofing minimum royalty be abated?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
------------------------| | | 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
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the minimum royalty fee may be abated during certain months of the year due to seasonal factors in a franchisee's territory. This abatement is not guaranteed, as Bumble Roofing will determine if seasonal factors apply to a specific territory at their sole discretion. The FDD specifies that seasonal factors typically apply to winter weather states where adverse weather conditions prevent franchisees from installing roofing.
For a prospective Bumble Roofing franchisee, this means that in regions with harsh winters, there is a possibility of reduced royalty payments during the months when roofing work is difficult or impossible to perform. This could help alleviate some financial pressure during slower business periods. However, franchisees should not automatically assume they will receive this abatement, as the decision rests entirely with Bumble Roofing.
It is important for potential franchisees to discuss this in detail with Bumble Roofing during their due diligence. Specifically, they should inquire whether their intended territory qualifies for seasonal abatement, what months are typically affected, and what criteria Bumble Roofing uses to make these determinations. Understanding these factors will help franchisees accurately forecast their potential revenue and expenses.