During the 2024 fiscal year, did Bumper Man receive any income from franchisees' purchases or leases?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not derive revenue from your purchases and leases to the extent you purchase or lease products or services from us. We further do not receive material benefits from suppliers based on your purchases or leases. During our 2024 fiscal year, we did not receive any income from franchisees' purchases of products or services or from leases by franchisees. We do not receive any money, rebates, or advertising allowances from approved suppliers. Neither we nor any of our officers owns an interest in any approved supplier.
We anticipate that the required purchases and leases from approved suppliers will constitute the substantial majority of all purchases by you to establish the Bumper Business, with approximately 80% of your initial investment comprised of required purchases and leases of equipment, tools, vehicle, products, and services. We estimate the up to 1% of your expenditures to operate the Bumper Business will be comprised of required purchases and leases of products and services.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–20)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, Bumper Man did not receive any income from franchisees' purchases of products or services, nor from leases by franchisees, during the 2024 fiscal year. The FDD also states that Bumper Man does not receive money, rebates, or advertising allowances from approved suppliers. Furthermore, neither Bumper Man nor its officers own an interest in any approved supplier.
This indicates that Bumper Man's revenue stream is not directly tied to franchisee purchases or leases of required items. This could be seen as a positive aspect for franchisees, as it removes a potential conflict of interest where the franchisor might be incentivized to inflate the cost of required purchases.
However, the FDD also states that required purchases and leases from approved suppliers will constitute the substantial majority of all purchases to establish the Bumper Business, with approximately 80% of the initial investment comprised of required purchases and leases of equipment, tools, vehicle, products, and services. Additionally, up to 1% of expenditures to operate the Bumper Business will be comprised of required purchases and leases of products and services. While Bumper Man may not directly profit from these purchases, franchisees should still carefully evaluate the costs and terms associated with these required purchases and leases.