Under what circumstances does Bumble Roofing bill customers 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, Bumble Roofing bills residential customers upon completion of the roofing contract. The document specifies that residential roofing contracts typically involve a single performance obligation, with revenue recognized over time as control continuously transfers to the customer. These projects are usually completed within one to five days and rarely involve multiple performance obligations or variable considerations.
Prior to the commencement of work, Bumble Roofing collects customer deposits, which are recorded as a contract liability. This means the company holds these funds as an obligation to perform the agreed-upon services. Only once the residential roofing contract is fully completed does Bumble Roofing issue a bill to the customer for the services rendered.
This billing practice provides clarity for franchisees, indicating a straightforward revenue recognition process for residential projects. Franchisees can expect to bill customers immediately after the job is done, which helps in managing cash flow. The short completion time of these contracts, ranging from one to five days, ensures relatively quick payment cycles. This also means that franchisees need to manage their working capital effectively to cover costs incurred during the project until the final billing.