What is the reported amount for Bumble Roofing's long-term operating lease liabilities?

According to Bumble Roofing's 2025 Franchise Disclosure Document, the company reports long-term operating lease liabilities of $4,676,367. This figure represents the present value of future lease payments, discounted and adjusted for the current portion of those liabilities.

Operating lease liabilities arise from Bumble Roofing's obligations to pay rent for the use of properties such as offices or warehouses under lease agreements. These leases are considered 'operating leases' under accounting standards, meaning they are not treated as financing arrangements where the company essentially owns the asset. Instead, the lease is an expense, and the liability reflects the commitment to make future payments.

For a prospective Bumble Roofing franchisee, this figure provides insight into the financial obligations of the franchisor related to its leased properties. While franchisees typically handle their own real estate arrangements, understanding the franchisor's financial commitments can offer a broader view of the company's financial health and stability. It's important to note that this liability does not directly impact the franchisee's individual financial obligations, but it is a component of the overall financial picture of Bumble Roofing.

The FDD also details how Bumble Roofing adopted Accounting Standards Update (ASU) 2016-02, Leases (Topic 842), which requires the recognition of right-of-use (ROU) assets and corresponding operating lease liabilities on the balance sheet. This adoption increased the transparency of the company's lease obligations, providing a more comprehensive view of its financial commitments.