The Roof Resource Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$89,067 - $482,683
Franchise Fee
$35,000
Total US Locations
7
Business Summary
The Roof Resource operates a business that provides consulting and advisory services to homeowners. It helps them select and secure premium installed roofing products and services, often at direct-from-manufacturer pricing. The Roof Resource business guides homeowners through the process of choosing roofing options and connecting with qualified contractors, suppliers, and other vendors for the actual installation. Franchisees do not sign agreements with these contractors or act as general contractors themselves. The business can be managed administratively from a home-based office, but all approved services and products are offered and provided on-site at customer locations.
Corporate History
The Roof Resource Franchising, Inc. was established as a Michigan corporation on January 30, 2023, and began offering franchises on March 21, 2023. The company does not have any predecessors or a parent company. However, it has two affiliates: The Roof Resource, Inc., established on December 14, 2020, which operates a similar Roof Resource business and provides franchisees with access to a network of licensed and insured roofing contractors; and The Roof Resource IP, Inc., established on January 30, 2023, which owns the Licensed Marks. Michael Harvey has served as CEO of The Roof Resource Franchising, Inc. since its formation and as CEO and Founder of the affiliate-owned Roof Resource business since December 2020.
Financial Overview
Investment Range
$89,067 - $482,683
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$45,000
Royalty %
10%
Marketing %
1%
Equipment Costs (Low)
$5,525
Equipment Costs (High)
$11,650
Working Capital
$9,131
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD's Special Risks section highlights that The Roof Resource Franchising, Inc.'s financial condition, as reflected in its financial statements, calls into question its financial ability to provide services and support to franchisees. The financial statements show an accumulated deficit of $(142,881) and a net loss of $(548,136) for the period from February 23, 2023, to December 31, 2023. Operating activities resulted in a net cash outflow of $(246,260) for the same period. The company does have loss carryforwards totaling $185,504 that may offset future income.
Financing Details
The Roof Resource Franchising, Inc. does not offer any direct or indirect financing to its franchisees. Additionally, it does not guarantee any notes, leases, or other financial obligations for franchisees.
Performance Metrics
Total US Locations
7
Franchised Units
6
Corporate Units
1
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
The Roof Resource Franchising, Inc. has no litigation to report. Item 3 of the FDD states that no litigation is required to be disclosed.
Bankruptcy History
The Roof Resource Franchising, Inc. has no bankruptcy history to report. Item 4 of the FDD states that no litigation is required to be disclosed in this item, which by common FDD structure, implies no bankruptcy to disclose either.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, The Roof Resource franchisees must be in full compliance with the terms of their Franchise Agreement and all related agreements. They must provide The Roof Resource Franchising, Inc. with 180 days' prior written notice of their request to renew. Franchisees are required to sign the then-current form of Franchise Agreement and any related agreements for the renewal term. They must also sign a general release in favor of The Roof Resource Franchising, Inc. and meet all other renewal requirements outlined in the Franchise Agreement. Furthermore, all owners and their spouses must comply with their existing agreements and personally guarantee the terms of the new renewal Franchise Agreement, which may contain materially different terms and conditions.
Training & Support Program
Franchisor Assistance
The Roof Resource Franchising, Inc. provides several forms of assistance to its franchisees. Before opening, The Roof Resource assists with granting the franchise rights and approving the franchisee's Marketing Territory and administrative office location. Franchisees receive access to confidential operations manuals, a list of approved suppliers and distributors, and guidance on approved signs, equipment, and furniture. The franchisor also identifies and lists the franchisee's business on its website and provides initial training for the franchisee's managing owner and one manager. After opening, The Roof Resource offers ongoing support by communicating operating standards, approving marketing materials, and maintaining a list of approved vendors. It may also coordinate an annual system conference and, in some cases, require or offer supplemental on-site training for a fee if performance standards are not met. The franchisor also provides training for replacement operating managers for a fee and administers system-wide marketing funds (Brand Development Fund and/or Advertising Cooperative). However, The Roof Resource Franchising, Inc. does not provide assistance with hiring and training employees, and franchisees are responsible for setting their own prices, except for national, regional, or corporate accounts negotiated by the franchisor.
Initial Training Hours
40
Training Location
Detroit, Michigan
Ongoing Support
After opening, The Roof Resource Franchising, Inc. provides ongoing support by establishing and communicating operating standards, procedures, and system requirements, including updates to approved services, products, and supplies. It also establishes and communicates marketing and brand standards, including approving or disapproving franchisee-requested marketing media. Franchisees receive a list of approved vendors and may be required to attend an annual system conference. Supplemental on-site training may be offered or required if performance standards are not met, for which a fee applies. The franchisor also provides initial training for replacement operating managers for a fee and administers the Brand Development Fund and may establish Advertising Cooperatives. The Roof Resource Franchising, Inc. does not provide assistance with the hiring and training of franchisee employees.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
hybrid
Owner Participation
full-time
Territory Type
Non-Exclusive
Territory Size Requirements
Each Marketing Territory Zone granted by The Roof Resource Franchising, Inc. consists of a geographic area that includes approximately 175,000 households. If a franchisee purchases multiple zones, each additional zone will also consist of roughly 175,000 households. The number of households is determined by The Roof Resource Franchising, Inc. based on raw data from the U.S. Census Bureau or other reliable data, without considering income or demographics, and is fixed as of the franchise agreement's effective date.
Staffing Notes
The Roof Resource Franchising, Inc. does not provide assistance with the hiring and training of franchisee employees; franchisees are solely responsible for managing and supervising their own staff. The franchisee's Managing Owner or an approved Operating Manager must be personally responsible for the daily management and supervision of the business, with the Managing Owner dedicating full-time efforts to these tasks. All employees and agents with access to confidential information must sign a confidentiality agreement. Employees are required to wear approved System branded apparel and uniforms. Franchisees must also monitor and ensure that all system supplies and approved services are prepared, maintained, and served according to The Roof Resource System's standards and manuals.