factual

What is excluded from the appraised value of the Bumble Roofing business?

Bumble_Roofing Franchise · 2025 FDD

Answer from 2025 FDD Document

Appraised values will exclude any and all consideration for goodwill or going concern value created by the Marks and business system licensed to Franchisee.

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2025 FDD)

According to Bumble Roofing's 2025 Franchise Disclosure Document, when determining the fair market value of a franchise, the appraisal will specifically exclude any consideration for goodwill or the value of the business as an ongoing concern that is attributed to the Bumble Roofing brand and its business system. This means that the appraised value will focus solely on the tangible assets and hard value of the business, without factoring in the intangible benefits conferred by the franchise system.

This exclusion has significant implications for a franchisee looking to sell their business back to Bumble Roofing. The purchase price offered by Bumble Roofing will not reflect the brand recognition, established processes, or customer loyalty associated with the Bumble Roofing name. Instead, the valuation will be based on the physical assets of the business, such as equipment, inventory, and accounts receivable.

For a prospective franchisee, this highlights the importance of understanding how the resale value of their Bumble Roofing franchise will be determined. It suggests that building a business with strong, tangible assets is crucial, as the value of the Bumble Roofing brand itself will not be considered in the appraisal. Franchisees should inquire about the typical valuation process and factors that contribute to the tangible asset value of a Bumble Roofing franchise to make informed investment decisions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.