Bumble Roofing Logo

Bumble Roofing

Bumble Roofing Franchisor, LLC
https://www.bumblefranchising.com
1-800-722-4668
2426 Old Brick Road, Glen Allen, VA 23060

Initial Investment Range

$171,998 to $313,834

Franchise Fee

$61,500 to $67,500

The franchise described in this disclosure document is for the operation of a Bumble Roofing® business, which offers and sells roofing installation and repairs, and related products and services, for residential and commercial customers.

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Bumble Roofing January 28, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: July 16, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
3
2
5

Disclosure of Franchisor's Financial Instability

Medium Risk

Explanation

Bumble Roofing Franchisor, LLC (Bumble LLC) is a newly formed entity with no financial history. However, its obligations are guaranteed by its parent, OLB Holdco, which appears financially stable according to its audited financial statements in Exhibit A. While the parent's backing reduces immediate insolvency risk, the franchise system itself is unproven and depends on the parent's continued support and strategic direction, which could change under its private equity ownership.

Potential Mitigations

  • An accountant should analyze the parent's consolidated financial statements, including footnotes on debt and related-party transactions, to assess its long-term stability.
  • Your attorney should review the terms of the parent guarantee in Exhibit I to understand its scope and any limitations.
  • Discuss the parent company's long-term commitment to the Bumble Roofing brand with your business advisor.
Citations: Item 1, Item 21, FDD Exhibit A, FDD Exhibit I

High Franchisee Turnover

Low Risk

Explanation

This specific risk was not identified. The franchise system is new, and Item 20 data for the most recent fiscal year shows no franchisee turnover. High turnover is a critical indicator of systemic problems, so you should monitor future FDDs for this data. A significant number of terminations, non-renewals, or other closures relative to the system size could signal issues with profitability, support, or the business model.

Potential Mitigations

  • Your business advisor should help you establish contact with a diverse group of the initial franchisees listed in Item 20 to discuss their early experiences.
  • When reviewing future FDDs, have an accountant help you calculate the annual franchisee turnover rate to monitor system health.
  • It is advisable to ask your attorney about the typical reasons for high franchisee turnover in other systems.
Citations: Not applicable

Rapid System Growth

High Risk

Explanation

The franchise system grew from zero to 55 operating territories in its first year of franchising, as shown in Item 20. Such rapid expansion can strain a new franchisor's resources, potentially leading to inadequate franchisee support, training, and quality control. While growth can be positive, you should verify that the franchisor has the infrastructure and experienced personnel to effectively manage this expansion and support all new units.

Potential Mitigations

  • In discussions with current franchisees, your business advisor should prompt you to inquire specifically about the quality and responsiveness of franchisor support.
  • It is wise to question the franchisor directly about their specific plans for scaling support systems to match the rapid franchise sales.
  • Your attorney should review the franchisor's support obligations in the Franchise Agreement to understand what is contractually guaranteed.
Citations: Item 1, Item 2, Item 11, Item 20

New/Unproven Franchise System

High Risk

Explanation

Bumble LLC is a new franchisor, having commenced franchising operations in August 2023. This is explicitly identified as a "Short Operating History" risk on the "Special Risks" page of the FDD. Investing in an unproven system carries higher risk, as its business model, support systems, and brand recognition are not yet established in the franchise market. Your success is highly dependent on the franchisor's ability to successfully build the brand.

Potential Mitigations

  • A thorough investigation of the management team's prior experience in both the roofing industry and in franchising is critical; a business advisor can help.
  • You should contact the earliest franchisees listed in Exhibit C to gather direct feedback on the initial support and system performance.
  • Your accountant should review the parent company's financials to assess capitalization and its ability to fund this new venture through its initial stages.
Citations: FDD Special Risks page, Item 1, Item 20

Possible Fad Business

Low Risk

Explanation

This risk was not identified. The business is in the residential and commercial roofing industry, which is a long-established and essential service sector. While marketing methods or specific products may evolve, the core demand for roofing installation and repair is not considered a fad, suggesting a more stable long-term market than a trend-based business.

Potential Mitigations

  • Consult with a business advisor to research local competition and long-term market demand for roofing services in your specific territory.
  • It is wise to ask the franchisor about their plans for product and service innovation to stay competitive in the market.
  • An accountant can help you model the financial impact of potential seasonality, which is a more relevant risk in this industry.
Citations: Not applicable

Inexperienced Management

Medium Risk

Explanation

While the management team detailed in Item 2 has extensive experience managing other home service franchise brands under the Empower Brands umbrella, the Bumble Roofing franchise system is new. The application of their expertise to the specific operational and market challenges of the roofing industry is recent. You are dependent on their ability to successfully adapt their franchising knowledge to this new concept and provide effective, industry-relevant support.

Potential Mitigations

  • A discussion with your business advisor should focus on assessing whether the management's skills from other trades are directly transferable to roofing.
  • In your calls with current franchisees, it would be prudent to inquire about the quality and relevance of the operational guidance received.
  • Your attorney can help you question the franchisor about the specific roofing industry expertise on their support team.
Citations: Item 1, Item 2

Private Equity Ownership

High Risk

Explanation

As disclosed in Item 1, the franchisor is ultimately owned by the private equity firm MidOcean Partners. PE firms typically have a specific investment horizon and focus on maximizing returns, which may not always align with the long-term health of franchisees. This could potentially lead to decisions like increasing fees, reducing support to cut costs, or selling the system, which could negatively impact your business and the value of your investment.

Potential Mitigations

  • It is advisable to research the private equity firm's history with other franchise brands, focusing on franchisee satisfaction and system health.
  • Your attorney should review the Franchise Agreement's assignment clause to understand the franchisor's right to sell the system without your consent.
  • Discussing the impact of PE ownership with current franchisees could provide valuable insight into recent system changes.
Citations: Item 1, FA § 15.2

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified in the FDD. Item 1 provides a detailed description of the franchisor's parent and affiliate companies. Furthermore, Item 21 includes the audited financial statements for the parent guarantor, OLB Holdco, LLC. Proper disclosure of parent companies and their financial backing is crucial for assessing the overall stability and resources behind the franchise brand you are considering.

Potential Mitigations

  • Your accountant should still carefully review the provided parent company financials and any inter-company transactions detailed in the notes.
  • It is wise to have your attorney confirm that the guarantee provided by the parent company is legally sound and enforceable.
  • A business advisor can help you understand the complex corporate structure and the relationships between the different entities.
Citations: Not applicable

Predecessor History Issues

Low Risk

Explanation

This risk was not identified. The FDD's Item 1 discloses a predecessor entity from which assets were acquired but states this entity did not offer franchises. Items 3 and 4 do not indicate any litigation or bankruptcy history associated with this predecessor. A clean and transparent predecessor history is a positive sign, though the lack of a franchising track record from the predecessor means the current system is entirely new.

Potential Mitigations

  • A business advisor can help you research the reputation of the predecessor company in its market to gauge operational history.
  • When speaking with management, you could inquire about what key operational learnings were carried over from the predecessor.
  • Your attorney should confirm that the asset purchase from the predecessor does not expose you to any legacy liabilities.
Citations: Not applicable

Pattern of Litigation

Low Risk

Explanation

This risk was not identified. Item 3 of the FDD reports that there is no material litigation that requires disclosure. The absence of litigation, particularly lawsuits initiated by franchisees alleging fraud or misrepresentation, is a positive indicator. It is important to monitor this item in future FDDs, as a pattern of litigation can be a significant red flag about a franchisor's practices and relationship with its franchisees.

Potential Mitigations

  • It is still a good practice for your attorney to conduct an independent public records search for litigation involving the franchisor or its principals.
  • During due diligence calls, you can ask current franchisees about their experiences with disputes and how the franchisor resolves them.
  • A business advisor can help you understand common sources of conflict in franchise systems.
Citations: Not applicable
2

Disclosure & Representation Risks

Total: 14
7
2
5

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 8
5
3
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

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4

Legal & Contract Risks

Total: 9
7
1
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

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5

Territory & Competition Risks

Total: 5
2
3
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 8
5
2
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
2
1
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational & Control Risks

Total: 10
4
5
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 12
9
3
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 1
0
1
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.