What was the reported value of Bumble Roofing's goodwill as of September 30, 2024?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
Goodwill is not amortized, but is tested for impairment using a fair value approach. If the fair value of the reporting unit is less than its carrying value, or if the fair value of the goodwill has been diminished, an impairment loss would be recorded to the extent of that difference. The Company tests for impairment as of September 30 annually. Goodwill will be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value or diminish the fair value of the goodwill. Management believes there has been no impairment of intangible assets during 2024, 2023, or 2022.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Bumble Roofing evaluates goodwill, which is not amortized, for impairment using a fair value approach. The company conducts impairment tests annually as of September 30th. If the fair value of a Bumble Roofing reporting unit is less than its carrying value, or if the fair value of the goodwill has been diminished, an impairment loss would be recorded to the extent of that difference.
The FDD states that management believed there was no impairment of intangible assets during 2024, 2023, or 2022. However, the document does not explicitly state the exact value of Bumble Roofing's goodwill as of September 30, 2024.
A prospective franchisee should ask Bumble Roofing's franchisor for the specific goodwill value as of September 30, 2024, to gain a clearer understanding of the company's financial position and the value of its intangible assets. This information is crucial for assessing the overall financial health and stability of the franchise system.