On what date was Bumble Roofing of LA, LLC acquired?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
RY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation and Presentation
The accompanying consolidated financial statements include the accounts of OLB Holdco and its wholly-owned subsidiaries listed below:
- Archadeck Franchisor, LLC ("Archadeck")
- OLB Supply Chain, LLC ("OLB Supply")
- Conserva Irrigation Franchisor, LLC ("Conserva")
- Outdoor Lighting Perspectives Franchisor, LLC ("OLP")
- Superior Fence and Rail Franchisor, LLC ("SFR") Formed on December 15, 2021 (Note 7).
- Superior Fence and Rail of North Florida, LLC ("SFR-NOFL") Acquired on December 15, 2021 (Note 7).
- Koala Insulation, LLC ("Koala") Acquired on April 13, 2023 (Note 7).
- Wallaby Windows Franchisor, LLC ("Wallaby") Formed on April 13, 2023 (Note 7).
- Wallaby Windows of Melbourne, LLC ("Wallaby-Melbourne") Acquired on April 13, 2023 (Note 7).
- Bumble Roofing Franchisor, LLC ("Bumble") Formed on May 1, 2023 (Note 7).
- Bumble Roofing of LA, LLC Acquired on May 1, 2023 (Note 7).
- Canopy Franchise Corporation ("Canopy") Acquired 60% on June 13, 2023 (Note 7).
- JJB Franchisor, LLC ("JJB") Formed to acquire Junk, Junk, Baby! Franchising, LLC and Junk, Junk Baby! IP, LLC on August 31, 2023. This entity was discontinued in 2024 (Note 7).
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Principles of Consolidation and Presentation (Continued)
The accompanying consolidated financial statements present the operations, equity and cash flows of OLB Holdco and its wholly-owned subsidiaries as of and for the years ending September 30, 2024, 2023, and 2022. Intercompany transactions and balances have been eliminated in consolidation.
The Company follows accounting standards set by the Financial Accounting Standards Board ("FASB"). The FASB sets accounting principles generally accepted in the United States of America ("GAAP").
Adoption of New Accounting Policies
Accounting Standards Update 2016-02, Leases
Effective October 1, 2022, the Company adopted Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842).
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Bumble Roofing Franchise Disclosure Document, Bumble Roofing of LA, LLC was acquired on May 1, 2023. This acquisition was part of Bumble Roofing's strategy to add a roofing contractor brand to its portfolio.
The document further details that the purchase price for Bumble-LA was approximately $3,800,000 after net working capital adjustments. This amount includes an earnout provision of approximately $2,268,000, which is an estimate based on a percentage of the new franchisor's, Bumble Roofing, 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.
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 payment, made within the acquisition's measurement period, led to the recognition of additional goodwill. For a prospective franchisee, this indicates the financial investment and strategic importance Bumble Roofing placed on integrating Bumble Roofing of LA, LLC into its franchise system.