Does Bumble Roofing lend or borrow amounts with Empower and affiliate companies?

According to Bumble Roofing's 2025 Franchise Disclosure Document, the company engages in lending and borrowing activities with Empower and its affiliated entities. Specifically, the FDD states that Bumble Roofing periodically lends or borrows unsecured, interest-bearing amounts with Empower and affiliate companies under common ownership of Empower. These amounts do not have specific repayment terms and are classified as long-term.

This related party transaction is important for prospective franchisees to consider. Since the repayment terms are not defined, it is difficult to determine when Empower or its affiliates will repay Bumble Roofing.

Additionally, the FDD states that Bumble Roofing and various other affiliates owned by Empower have guaranteed approximately $294,000,000 of credit facilities obtained by Empower, with total outstanding borrowings of approximately $286,000,000 as of September 30, 2024. This guarantee means that Bumble Roofing could be responsible for repaying Empower's debt if Empower defaults. This could significantly impact Bumble Roofing's financial stability and, by extension, the financial stability of its franchisees.

Prospective franchisees should carefully review Bumble Roofing's financial statements and related party disclosures to understand the potential risks and benefits associated with these transactions. It would be prudent to seek clarification from the franchisor regarding the terms of these loans and guarantees, as well as the potential impact on the franchise system.