What is the interest rate used to calculate the financed amount for equipment for a Bumble Roofing franchise?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
er lease or purchase one. The above estimates assume that you will lease or purchase a vehicle that meets our then-current standards and specifications, in addition to the required vehicle graphics and equipment to operate a single Franchise in a single territory. The high figure assumes you fund the entire purchase with cash at the highest end of the price range. The low figure assumes you finance with a 20% down payment as described below. As noted in Item 8 certain proprietary products, including vehicle wraps and graphics, certain services, equipment or tools required or developed in the future may be supplied solely by us. These estimates are based on a 20% down payment, with the remainder financed over a 60-month term, at an interest rate of 9% plus three months of payments. Your down payment, term and interest may vary. You must obtain the required initial equipment prior to commencing operations. The required initial equipment consists of one approved vehicle (currently Ford Maverick, Ford Ranger, or Ford F150) plus certain basic tools and equipment including but not limited to a ladder, roofing samples, pressure washer, drone, and ladder rack. If paid in full, your total required equipment cost will range from $46,423 to $79,434. Below, we have shown the total investment to make you aware of the overall costs. These numbers were calculated by using a range of $30,000 to $50,000 for the Ford Truck, plus $5,000 for the required graphics package, and up to $7,000 for various tools and equipment; the high amount includes an additional 12% buffer to account for extra expenses or inflation.
| Equipment Type | Price Range | Down Payment of 20% | Amount Financed at 9% | Monthly Financed Amount at 9% rate | Amount Financed 3 Months | Down Payment plus 3 months |
|---|---|---|---|---|---|---|
| low | low | low | low | low | low | |
| high | high | high | high | high | high | |
| One Ford Truck with Required | $46,423 | $9,285 | $37,138 | $771 | $2,313 | $11,598 |
| Graphics, Tools, and Equipment | $79,434 | $15,887 | $63,547 | $1,320 | $3,960 | $19,847 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 24–27)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, if a franchisee chooses to finance the purchase of a vehicle and required equipment, the estimated initial investment includes calculations based on a 9% interest rate. This interest rate is applied to the financed amount after a 20% down payment, with the remainder financed over a 60-month term. The FDD also indicates that the franchisee's actual down payment, term, and interest rate may vary.
The estimated cost for the required equipment, which includes a Ford truck, graphics package, tools, and equipment, ranges from $46,423 to $79,434 if paid in full. However, if financed, the amount financed at 9% interest ranges from $37,138 to $63,547, resulting in monthly payments ranging from $771 to $1,320. The initial investment table also includes the down payment plus three months of financed payments, ranging from $11,598 to $19,847.
It is important to note that the 9% interest rate is an estimate, and the actual interest rate a franchisee receives may differ based on their creditworthiness, the availability of financing, and the lending policies of financial institutions. Prospective franchisees should consult with financial advisors to understand the potential costs and terms of financing the equipment needed to start a Bumble Roofing franchise.