What was the value of Bumble Roofing's trademarks in 2023?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
angible Assets (Continued)
Intangible assets consists of the following at September 30:
| Estimated Useful Life | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| Franchise agreements | 7 years | $ 55,934,000 | $ 55,934,000 | $ 30,710,000 |
| Internally developed software | 5 years | 7,650,056 | 6,935,010 | 6,617,000 |
| Trademarks | 15 years | 4,286,000 67,870,056 | 4,286,000 67,155,010 | 1,840,000 39,167,000 |
| Less: accumulated amortizatio | n | (23, 109, 087) 44,760,969 | (12,903,224) 54,251,786 | (5,559,873) 33,607,127 |
| Goodwill | Indefinite | 193,217,564 | 191,8 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the value of its trademarks in 2023 was $4,286,000. This valuation is part of the company's overall intangible assets, which also include franchise agreements and internally developed software. These assets are amortized over time, reflecting their estimated useful lives. For trademarks, this amortization period is 15 years.
This valuation is significant for prospective Bumble Roofing franchisees because it reflects the brand's established recognition and market presence. A strong trademark value suggests that the brand has a degree of customer loyalty and awareness, which can be a considerable advantage when starting a new franchise. The amortization of these trademarks means that their value is systematically reduced over their useful life, reflecting their gradual consumption or obsolescence.
It's important to note that while the trademarks are amortized, Bumble Roofing periodically evaluates whether changes have occurred that would require a revision of the remaining estimated useful life of the trademarks. This evaluation ensures that the financial statements accurately reflect the current value of these intangible assets. Goodwill, another intangible asset, is not amortized but is tested for impairment annually, ensuring that its value is also accurately represented.
For a potential franchisee, understanding the value and amortization of intangible assets like trademarks provides insight into the financial health and brand strength of Bumble Roofing. It also highlights the importance of maintaining and protecting the brand's trademarks to preserve their value over the long term. This information, combined with other financial data in the FDD, can help franchisees make informed decisions about their investment.