What is the 'Continuing Service Fee' for a Bumper Man franchise, and where in the FDD is it described?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
marizes certain provisions of the Franchise Agreement to which it is attached. In the event of a conflict in the terms of the Summary Page and the Franchise Agreement, the terms of the Franchise Agreement will control.
| Effective Date: | |
|---|---|
| Designated Area: | |
| Initial Franchise Fee: | $50,000 |
| Continuing Service Fee: | 25% of Gross Sales |
| L |
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the Continuing Service Fee is 25% of Gross Sales. This fee is detailed in Item 23, which covers receipts and other financial obligations for franchisees.
This means that as a Bumper Man franchisee, you will be required to pay 25% of your total revenue to the franchisor on a regular basis. This fee is ongoing and is a percentage of your gross sales, not just your profits. It's important to factor this significant expense into your financial projections and business plan.
In addition to the Continuing Service Fee, the FDD also mentions a Non-Reported Designated Services Fee, which is 15% of Gross Sales. This fee is applied if a franchisee fails to report services performed to the franchisor, as outlined in the Manual and Franchise Agreement. Therefore, accurate and timely reporting of all services is crucial to avoid this additional expense.