What was the reported value of Bumble Roofing's 'Rebates receivable, net' in 2024?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
HOLDCO, LLC CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2024, 2023, AND 2022
ASSETS
| 2024 | 2023 ("As Restated") | 2022 ("As Restated") | |
|---|---|---|---|
| Current Assets | |||
| Cash | $ 2,941,232 | $ 1,737,401 | $ 1,492,295 |
| Royalties and accounts receivable, net | 10,2 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the 'Rebates receivable, net' for 2024 was reported as $1,889,160. This figure represents the amount of rebates that Bumble Roofing expected to receive, net of any adjustments, as of the end of the 2024 fiscal year. This is a current asset, meaning it is expected to be converted to cash within one year.
Rebates receivable typically arise from agreements with suppliers where Bumble Roofing earns rebates based on the volume of purchases made by its franchisees. These rebates can be a significant source of revenue for the company, as noted in the FDD, and are recognized as income when payment is reasonably assured and the performance conditions stipulated in the supplier agreements have been met.
For a prospective franchisee, understanding the rebates receivable is important because it reflects the financial health and revenue streams of Bumble Roofing. A higher rebates receivable balance could indicate strong sales and purchasing activity within the franchise system. However, it's also important to consider the potential risks associated with relying on rebates, such as changes in supplier agreements or the failure of franchisees to meet purchase volume targets. Therefore, franchisees should inquire about the stability and reliability of these rebate programs during their due diligence.