What is the cure period for under-reporting Gross Sales for a Bumper Man franchise?
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 the franchisor. This correction includes paying any Non-Reported Designated Services Fee that may be due. Failure to correct this within the specified timeframe constitutes an event of default that could lead to termination of the franchise agreement.
This short cure period underscores the importance of accurate and timely reporting of Gross Sales. Bumper Man franchisees must maintain meticulous records and promptly address any discrepancies identified by the franchisor to avoid potential penalties or termination. The FDD also mentions that the franchisee may be responsible for covering the costs of audits or inspections initiated by Bumper Man if the reports submitted by the franchisee show an understatement of Gross Sales by 1.25% or more.
It is important to note that Bumper Man can terminate the franchise agreement with immediate notice if the franchisee fails to submit reports, pay amounts due, or otherwise materially comply with the agreement on three or more separate occasions within a 12-month period, regardless of whether such failures are corrected after notice. This "repeated default" clause highlights the need for consistent compliance with all terms of the franchise agreement.
Prospective Bumper Man franchisees should carefully review the default and termination provisions in the franchise agreement to fully understand their obligations and the potential consequences of non-compliance. Maintaining accurate records, submitting timely reports, and promptly addressing any issues raised by Bumper Man are crucial for maintaining a successful and compliant franchise operation.