How much did Bumble Roofing spend on internally developed software additions in 2024?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
IDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDING SEPTEMBER 30, 2024, 2023, AND 2022
| 2024 | 2023 ("As Restated") | 2022 ("As Restated") | |
|---|---|---|---|
| Cash Flows from Operating Activities: | |||
| Net income | $ 20,459,018 | $ 9,920,680 | $ 6,089,513 |
| Adjustments to reconcile net income | |||
| to net cash provided by operating activities: | |||
| Bad debt expense | 300,531 | 59,046 | 82,201 |
| Depreciation and amortization | 10,773,355 | 7,910,727 | 5,494,567 |
| Lease expense | 940,945 | 519,344 | - |
| Operating lease payments | (657,754) | (265,181) | - |
| Changes in assets and liabilities: | (0.000.10=) | (=00.000) | (0.044.045) |
| Royalties and accounts receivable | (2,099,495) | (729,389) | (2,044,615) |
| Rebates receivable | (73,676) | (1,815,484) | (47.454) |
| Notes receivable | (403,653) | 113,076 | (17,454) |
| Inventory Prepaid expenses and other assets | (246,248) | (1,043,705) | (122,300) |
| 1,348,125 | 192,280 | (976,687) | |
| Accounts payable and accrued expenses | 153,274 | 2,121,617 | 925,000 |
| Deferred revenues on franchise sales | (1,253,452) , , , , | (824,331) | 1,337,600 |
| Customer deposits | (502,153) | 706,594 | (306,386) |
| Net Cash Provided by Operating Activities | 28,738,817 | 16,865,274 | 10,461,439 |
| Cash Flows from Investing Activities: | |||
| Purchases of property and equipment | (1,054,507) | (1,494,918) | (467,351) |
| Internally developed software additions | (715,046) | (318,010) | (267,000) |
| Net cash received from acquisition of Koala and Wallaby | - | 33,145 | - |
| Net cash received from acquisition of Canopy | - | 641 | - |
| Cash paid for Bumble Bee of LA | (421,250) | - | - |
| Acquisition of Junk Junk Baby | (125,000) | - | |
| Net advances from (repayments to) affiliated companies | 743,827 | 2,966,646 | (3,790,229) |
| Net Cash Provided (Required) by Investing Activities | (1,446,976) | 1,062,504 | (4,524,580) |
| Cash Flows from Financing Activities: | |||
| Net distributions to Member | (26,088,010) | (17,682,672) | (5,078,245) |
| Net Cash Required by Financing Activities | (26,088,010) | (17,682,672) | (5,078,245) |
| Net Change in Cash | 1,203,831 | 245,106 | 858,614 |
| Cash, Beginning of Year | 1,737,401 |
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 internally developed software additions totaled $715,046 in 2024. This figure reflects the capital invested by Bumble Roofing in creating or enhancing its proprietary software during that year.
For a prospective Bumble Roofing franchisee, this indicates the franchisor is actively investing in technology. This investment could lead to more efficient operations, better customer service, or improved marketing capabilities for the franchise system as a whole. It also demonstrates a commitment to staying competitive in the roofing industry through technological advancements.
It's important to note that these costs are distinct from the ongoing expenses related to software maintenance and training, which Bumble Roofing expenses as incurred. The capitalized costs include direct external costs, internal payroll, and payroll-related costs for employees directly involved in the software projects. The internally developed software is amortized over a useful life of 5 years.