What was the change in the 'Due (to) from Affiliated Companies' for Bumble Roofing in 2023 that led to the restated value?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
s of this change in accounting policy for the years ending September 30, 2023 and 2022.
| 2023 | ||||||
|---|---|---|---|---|---|---|
| Previously Stated | Change | Restated | ||||
| Net Income | $ 7,827,835 | $ 2,212,928 | $ 10,040,763 | |||
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the 'Due (to) from Affiliated Companies' line item was restated for 2023. The previously stated value was $(8,621,529), but after a change of $3,864,461, the restated value became $(4,757,068). This indicates a significant adjustment related to transactions or balances with affiliated entities.
This restatement could be due to a variety of factors, such as previously unrecorded transactions, corrections of accounting errors, or changes in the valuation of intercompany balances. For a prospective Bumble Roofing franchisee, this highlights the importance of understanding the financial relationships between the franchisor and its affiliates. These relationships can impact the financial stability and performance of the franchise system.
It is important to note that on May 1, 2023, Bumble Roofing acquired the assets of Bumble-LA for approximately $3,800,000. The acquisition was funded by capital contributions and cash. The change in 'Due (to) from Affiliated Companies' could be related to this acquisition. A prospective franchisee should seek clarification from Bumble Roofing regarding the specific reasons for this restatement and its potential impact on the franchisee's business. Understanding these intercompany dynamics is crucial for making informed investment decisions.