How is Bumble Roofing's income or loss treated for federal and state income tax purposes?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
Accordingly, the Company's income or loss is presented without a provision or credit for federal and state income taxes. The Company's income or loss is allocated to Empower in accordance with the operating agreement. The Company annually evaluates all federal and state income tax positions. This process includes an analysis of whether these income tax positions the Company takes meet the definition of an uncertain tax position under the Income Taxes Topic of the Financial Accounting Standards Codification.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the company's income or loss is presented without any provision or credit for federal and state income taxes. This is because Bumble Roofing is a wholly-owned subsidiary of Empower Brands Franchising, LLC, which in turn is a wholly-owned subsidiary of MidOcean BCAT Holdings, Inc.
The FDD states that Bumble Roofing's income or loss is allocated to Empower Brands Franchising, LLC, according to their operating agreement. Bumble Roofing evaluates all federal and state income tax positions annually, including analyzing whether these positions meet the definition of an uncertain tax position under the Financial Accounting Standards Codification.
For prospective Bumble Roofing franchisees, this means that the parent company, Empower Brands Franchising, LLC, handles the consolidated income taxes. The franchisee will be responsible for their own business's income tax obligations, separate from how Bumble Roofing as a company is taxed.