What amount is financed by Bumper Man, Inc.?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
rument you execute.
New franchise operators who purchase a new Bumper Man franchise and who meet our current credit criteria may pay us half of the initial franchisee fee upon the execution of the Franchise Agreement and pay the remaining half (up to $25,000) in 120 equal semi-monthly installments during a five-year term at an interest rate of 10% per annum, secured by your right, title and interest in the Franchise Agreement. Default of your payment obligations under the note constitutes a default under the Franchise Agreement for which we may terminate the Franchise Agreement if you fail to cure your default of your payment obligat
Source: Item 10 — FINANCING (FDD pages 21–22)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, Bumper Man, Inc. may finance up to $25,000 of the initial franchise fee for qualified new franchise operators. This financing arrangement is not available to all franchisees; it is contingent upon meeting Bumper Man's credit criteria.
The financing involves paying half of the $50,000 initial franchise fee upfront and financing the remaining half (up to $25,000). This remaining balance is then paid in 120 equal semi-monthly installments over a five-year term. The interest rate applied to this financed amount is 10% per annum.
Defaulting on the payment obligations under the financing note constitutes a default under the Franchise Agreement. This gives Bumper Man the right to terminate the Franchise Agreement if the franchisee fails to correct the payment default. This condition highlights the importance of franchisees carefully assessing their financial capabilities before entering into a financing agreement with Bumper Man.