How does Bumble Roofing recognize revenue for residential roofing contracts?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
Bumble-LA's residential roofing contracts generally include a single performance obligation for which revenue is recognized over time, as performance obligations are satisfied, due to the continuous transfer of control to the customer. Residential roofing contracts are normally completed in one to five days. These contracts seldom have multiple performance obligations or variable consideration. The contract liability "customer deposits" represents funds received from customers before the residential roofing contract has commenced. Customers are billed upon contract completion.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, revenue from residential roofing contracts is recognized over time as the performance obligations are satisfied. This is due to the continuous transfer of control to the customer throughout the project. Bumble Roofing's residential contracts are typically completed within one to five days and generally include a single performance obligation.
Customer deposits are recorded as a contract liability, representing funds received before work commences. Billing occurs upon completion of the contract. These contracts typically do not involve multiple performance obligations or variable consideration.
This approach to revenue recognition means that Bumble Roofing franchisees will recognize income as they complete the roofing work, aligning revenue with the progress of the project. This is a common practice in service-based industries where control of the service is transferred to the customer gradually.