How does Bumble Roofing use the National Branding & Marketing Fund?

Under the Franchise Agreement, you must pay us a National Branding & Marketing Fee equal to 1% of Gross Revenues, which may be increased by us up to a maximum of 2% of Gross Revenues. You must pay the National Branding & Marketing Fee at the same time that you pay your Royalty Fees. Some franchisees may pay a different percentage rate if they signed a different form of Franchise Agreement. Unless required by law, we will not be required to deposit the National Branding & Marketing Fee in a separate bank account, commercial account or savings account and we may place the National Branding & Marketing Fund "). The National Branding & Marketing Fund will be administered by us, in our discretion, and we may use a professional advertising agency or media buyer to assist us. Your contribution to the National Branding & Marketing Fund will be in addition to all other advertising fees set out in this Item 11. BUMBLE ROOFING® businesses that we operate in the United States may, but are not required to, contribute to the National Branding & Marketing Fund at the same percentage rate as a majority of BUMBLE ROOFING® businesses must pay to the Branding & Marketing Fund.

We may reimburse ourselves, our authorized representatives or our affiliates from the National Branding & Marketing Fund for administrative costs, independent audits, accounting, bookkeeping, reporting and legal expenses, taxes and all other direct or indirect expenses that may be incurred by us or our authorized representatives and associated with the programs funded by the National Branding & Marketing Fund. We assume no other direct or indirect liability or obligation to collect amounts due to the National Branding & Marketing Fund or to maintain, direct or administer the National Branding & Marketing Fund. Any unused funds in any calendar year will be applied to the following year's funds, and we reserve the right to contribute or loan additional funds to the National Branding & Marketing Fund on any terms we determine. Since we do not have this fund audited, audited financial statements are not available to Franchisees. We will provide to you, upon request, an annual accounting for the National Branding & Marketing Fund that shows how the National Branding & Marketing Fund proceeds have been spent for the previous year and plans to invest the National Branding & Marketing Fund for the current year.

We may use the National Branding & Marketing Fund for the creation, production and placement of commercial advertising; internet advertising; agency costs and commissions; creation and production of video, audio and written advertisements; administering multi-regional advertising programs, direct mail and other media advertising; in-house staff creative development, assistance and related administrative costs; local promotions; supporting public relations; market research; website development; public relations efforts including affiliations with charitable organizations related to the Roofing Business; and other advertising and marketing activities, including participating at trade shows or industry associations.

Advertising may be placed in local, regional or national media of our choice, including print, direct mail, internet, radio or television. We do not guarantee that advertising expenditures from the National Branding & Marketing Fund will benefit you or any other franchisee directly, on a pro rata basis, or at all.

We will not use National Branding & Marketing Fund monies to solicit franchisees in our current fiscal year. Neither our affiliates nor we receive payments for providing goods or services to the National Branding & Marketing Fund, except for reimbursement of expenses as described above.

You are strongly encouraged to order sales and marketing material from our designated supplier(s). It is a material breach of the Franchise Agreement to use other marketing material without prior written approval. If you desire to use your own advertising materials, you must obtain our prior approval. We will review your request and we will respond in writing within 15 days from the date we receive all requested information. Our failure to notify you in the specified time frame will be deemed a disapproval of your request. Use of logos, Marks and other name identification materials must be consistent with our approved standards. You may not use our logos, Marks and other name identification materials on items to be sold or services to be provided without our prior written approval. If we approve of promotional items or services that will be sold in your Roofing Business, those items or services must be included in your gross revenues.

Except as described above, we are not obligated to spend any amount on advertising in the geographical area where you are or will be located.

We retain the sole right to market on the Internet, including all use of websites, domain names, URL's, linking, advertising, and co-branding arrangements. You may not independently market on the Internet, or use any domain name, address, locator, link, metatag, or search technique, with words or symbols similar to the Marks. We intend that any Franchisee website be accessed only through our home page. You will provide us content for our Internet marketing. We retain the right to approve any linking or other use of our website.

During our last fiscal year ending September 30, 2024, we spent the following amounts from the National Branding & Marketing Fund: 20.7% was used for advertising and promotional materials, 25.1% was used for creative content development, and 54.2% was used for website services.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 30–37)