Must all Continuing Service Fees be paid to the Bumper Man franchisor before a transfer can be approved?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
only if the conditions set forth in this Section 16(d), as may be amended by Franchisor from time to time, are met prior to or concurrently with the proposed effective date of the Transfer:
- (i) Franchisee and its Principals have paid all Continuing Service Fees and all other amounts owed to Franchisor and its Affiliates, submitted all required Reports and other statements and data and otherwise are in full compliance with this Agreement as of the date of Franchisee's request for approval of the Transfer and as of the effective date of the Transfer.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, a franchisee must be in full compliance with the franchise agreement, including paying all outstanding Continuing Service Fees and other amounts owed to Bumper Man and its affiliates, before a transfer of the franchise can be approved. This requirement extends to submitting all required reports, statements, and data.
This means that if a Bumper Man franchisee wants to sell their business to someone else, they must first ensure that all financial obligations to Bumper Man are met. This includes not only the Continuing Service Fees but also any other fees or amounts that may be outstanding. The franchisee must also have submitted all required reports and data, ensuring that Bumper Man has a complete and accurate picture of the business's performance.
This condition protects Bumper Man by ensuring that the franchise is not transferred with outstanding debts or unfulfilled obligations. It also ensures that the new franchisee starts with a clean slate and is not burdened by the previous franchisee's financial issues. For a prospective franchisee looking to buy an existing Bumper Man franchise, it's crucial to verify that the seller has met all these requirements to avoid potential complications during the transfer process.
In addition to these financial and reporting requirements, the potential new franchisee must also meet certain standards set by Bumper Man. These standards include having sufficient business experience, aptitude, assets, and financial resources to operate the Bumper Business. The transferee must also not be involved in any competitive business and must agree to operate only the Bumper Business. Furthermore, they must complete the initial training program and agree to be bound by the terms of Bumper Man's current franchise agreement.