What was the bad debt expense for Bumble Roofing in 2022, as restated?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
IDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDING SEPTEMBER 30, 2024, 2023, AND 2022
| 2024 | 2023 ("As Restated") | 2022 ("As Restated") | |
|---|---|---|---|
| Cash Flows from Operating Activities: | |||
| Net income | $ 20,459,018 | $ 9,920,680 | $ 6,089,513 |
| Adjustments to reconcile net income | |||
| to net cash provided by operating activities: | |||
| Bad debt expense | 300,531 | 59,046 | 82,201 |
| Depreciation and amort |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the bad debt expense for 2022, as restated, was $82,201. This figure represents the amount of accounts receivable that Bumble Roofing determined to be uncollectible during that year. Bad debt expense is an important indicator of the financial health of a company, as it reflects the effectiveness of its credit and collection policies.
For a prospective Bumble Roofing franchisee, understanding the bad debt expense can provide insights into the creditworthiness of the franchise system's customers and the potential risk of non-payment. A higher bad debt expense may indicate a need for more stringent credit policies or collection efforts. It's also worth noting that this figure is specific to Bumble Roofing's operations and may not directly translate to the franchisee's experience, as individual franchisee performance can vary.
Reviewing trends in bad debt expense over multiple years, as presented in the FDD, can offer a more comprehensive understanding of the financial risks associated with the franchise. In this case, the bad debt expense for Bumble Roofing was $59,046 in 2023 and $300,531 in 2024. A prospective franchisee should consider these figures in the context of overall revenue and other financial metrics to assess the potential impact of bad debt on their own business.