What costs does Bumble Roofing expense as incurred related to internal-use software?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
Additionally, the Company capitalizes certain costs incurred in connection with developing or obtaining internaluse software. Capitalized costs include direct external costs, internal payroll, and payroll-related costs for employees who are directly associated with and devote time to the project. Costs incurred during the preliminary project stage, as well as costs for maintenance and training, are expensed as incurred.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, certain costs related to internal-use software are expensed as they are incurred. Specifically, costs incurred during the preliminary project stage are expensed. Additionally, costs associated with maintenance and training related to the internal-use software are also expensed as incurred.
This means that Bumble Roofing franchisees will not be able to capitalize these specific costs, which would have allowed them to depreciate the expense over time. Instead, these expenses will be recognized immediately, potentially impacting the franchisee's short-term profitability.
It is important for prospective Bumble Roofing franchisees to understand these accounting practices, as they can affect the financial statements of the business. Franchisees should factor these expenses into their financial projections and business plans.