What was the approximate purchase price of Bumble-LA when acquired by Bumble Roofing's parent company?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
| Cash | $ 33,145 |
|---|---|
| Royalties and accounts receivable, net | 1,401,921 |
| Inventory | 1,220,640 |
| Prepaid expenses and other | 966,809 |
| Property and equipment, net | 631,169 |
| Intangibles | 93,505,648 |
| Accounts payable and accrued expenses | (152,960) |
| Contract liability - deferred revenue on franchise sales | (1,394,476) |
| Due to affiliates | (3,008,785) $ 93,203,111 |
Bumble-LA
On May 1, 2023, the Company acquired the assets Bumble-LA for the purpose of adding a roofing contractor brand to the existing portfolio. After net working capital adjustments, the purchase price of Bumble-LA was approximately $3,800,000 which includes an earnout provision of approximately $2,268,000, an estimate based on a percentage of the new formed franchisor's, Bumble, future franchise and royalties revenues. The acquisition was funded by capital contributions from Empower consisting of units of ownership interest in Bobcat Holdings valued at approximately $200,000 and cash. During 2024, additional consideration of $1,396,250 was paid to the former owner, which was comprised of $975,000 of ownership interest in Bobcat Holdings and $441,250 in cash. This payment was made within the mea
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the parent company acquired Bumble-LA on May 1, 2023, to add a roofing contractor brand to its portfolio. The purchase price, after net working capital adjustments, was approximately $3,800,000. This amount includes an earnout provision of approximately $2,268,000, which is an estimate based on a percentage of Bumble Roofing's future franchise and royalties revenues.
The acquisition was funded through capital contributions from Empower, consisting of ownership interest in Bobcat Holdings valued at approximately $200,000, and cash. In 2024, an additional $1,396,250 was paid to the former owner, comprising $975,000 of ownership interest in Bobcat Holdings and $441,250 in cash.
This additional payment was made within the measurement period of the acquisition, leading to the recognition of additional goodwill. For a prospective franchisee, this indicates that the initial investment in establishing the Bumble Roofing brand involved a significant acquisition with a substantial earnout component tied to the franchise's future performance. It also highlights the parent company's use of both cash and equity in Bobcat Holdings to finance the acquisition.