What is the cure period for under-reporting Gross Sales to Bumper Man?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- (xii) Franchisee under-states Gross Sales or fails to accurately report Gross Sales or its performance of any Designated Services, and does not correct such failure within three days after Notice of such failure is delivered to Franchisee, including without limitation payment of the Non-Reported Designated Services Fee for such failure to report performance of Designated Services;
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, a franchisee has three days to correct an under-reporting of Gross Sales after receiving notice from Bumper Man. This correction includes paying any Non-Reported Designated Services Fees that are due. Failure to correct the under-reporting within this timeframe could lead to further action from the franchisor.
This three-day cure period is relatively short, meaning franchisees must act quickly to rectify any reporting errors. Franchisees should implement robust accounting practices and regularly review their sales data to ensure accurate reporting. The Non-Reported Designated Services Fee is an additional cost that franchisees will incur if they fail to report their performance of designated services accurately.
It is important to note that Bumper Man also has the right to audit a franchisee's records if they suspect under-reporting. If an audit reveals an understatement of Gross Sales by 1.25% or more, the franchisee will be responsible for covering the costs of the audit, including accounting and attorney's fees. This provides a strong incentive for franchisees to maintain accurate records and report sales correctly.
In addition to the possibility of termination, Bumper Man can also pursue other remedies at law or in equity for under-reporting of Gross Sales. Franchisees should be aware of these potential consequences and take steps to ensure compliance with the reporting requirements outlined in the franchise agreement.