What was the change in rebates receivable for Bumble Roofing in 2024?
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 amortization | 10,773,355 | 7,910,727 | 5,494,567 |
| Lease expense | 940,945 | 519,344 | - |
| Operating lease payments | (657,754) | (265,181) | - |
| Changes in assets and liabilities: | (0.000.10=) | (=00.000) | (0.044.045) |
| Royalties and accounts receivable | (2,099,495) | (729,389) | (2,044,615) |
| Rebates receivable | (73,676) | (1,815,484) | (47.454) |
| Notes receivable | (403,653) | 113,076 | (17,454) |
| Inventory Prepaid expenses and other assets | (246,248) | (1,043,705) | (122,300) |
| 1,348,125 | 192,280 | (976,687) | |
| Accounts payable and accrued expenses | 153,274 | 2,121,617 | 925,000 |
| Deferred revenues on franchise sales | (1,253,452) , , , , | (824,331) | 1,337,600 |
| Customer deposits | (502,153) | 706,594 | (306,386 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the rebates receivable decreased by $1,741,808 in 2024. The rebates receivable was listed as ($73,676) in 2024 and was ($1,815,484) in 2023. This decrease is part of the changes in assets and liabilities related to cash flows from operating activities.
Rebates receivable represent the amount of money Bumble Roofing expects to receive from suppliers based on the purchasing volume of franchisees. A decrease in this receivable could indicate a few things. It may mean that franchisees purchased less from suppliers in 2024 compared to 2023, or that Bumble Roofing collected a significant portion of the rebates owed to them in 2024, or that there was a change in the rebate agreements with suppliers.
For a prospective franchisee, this information is useful for understanding the financial dynamics of Bumble Roofing. It is important to note that rebates are classified as revenues in the consolidated financial statements, as stated in NOTE 2. Understanding the fluctuations in rebates receivable can help a franchisee assess the overall financial health and operational efficiency of the franchise system. It would be prudent for a potential franchisee to inquire about the factors contributing to this decrease and how it might impact their own potential earnings and costs.