How is the Continuing Service Fee determined for a Bumper Man franchise during the Renewal Term?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Continuing Service Fee. Franchisee must pay to Franchisor a non-
refundable Continuing Service Fee. The Continuing Service Fee is set forth in the Summary Page. The Continuing Service Fee paid by Franchisee during the Renewal Term, if applicable, will be as set forth in the franchise agreement executed by Franchisee pursuant to Section 3(b)(iv).
agreement, which agreement will supersede this Franchise Agreement in all respects, and the terms of which may differ from the terms of this Franchise Agreement, including, without limitation, a higher percentage Continuing Service Fee, a Local Marketing Expenditure requirement, or a more restrictive Designated Area; provided that Franchisor will waive the Renewal Fee if Franchisee promptly signs and returns the current franchise disclosure document receipt when provided and signs and returns the then-current form of franchise agreement 30 days prior to expiration. If Franchisee fails to satisfy the foregoing conditions with respect to return of the receipt page and execution of the then-current franchise agreement, the Franchisee will pay to Franchisor the Renewal Fee in lieu of an initial franchise fee upon renewal.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, the Continuing Service Fee paid by the franchisee during the Renewal Term will be as set forth in the franchise agreement executed by the franchisee. The specific amount or percentage for the Continuing Service Fee during the renewal term is not explicitly stated in this excerpt but will be detailed in the franchise agreement.
This means that the fee structure applicable during the renewal period is subject to the terms outlined in the new franchise agreement that Bumper Man requires franchisees to sign for each renewal term. This agreement may include different terms than the original, such as a potentially higher percentage for the Continuing Service Fee, a Local Marketing Expenditure requirement, or a more restrictive Designated Area.
Prospective franchisees should carefully review the then-current form of the franchise agreement presented by Bumper Man before renewing their franchise to understand the financial obligations and other terms that will govern the renewal term. Franchisees should pay close attention to any changes in fees, marketing requirements, or territorial rights, as these could significantly impact their profitability and operational flexibility. Franchisees should also note that Bumper Man will waive the Renewal Fee if the franchisee promptly signs and returns the current franchise disclosure document receipt when provided and signs and returns the then-current form of franchise agreement 30 days prior to expiration.