What deductions are made from the amounts disbursed to the Bumper Man franchisee?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
We will disburse amounts collected for bumper repair services that you provide during the previous month on the 1st and 16th day of each month based upon the invoices you submit to us, less the Continuing Service Fee and any other amounts due to us under the Franchise Agreement. (Franchise Agreement – Section 4(e)).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 22–27)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, franchisees will receive payments for bumper repair services they provide. These payments are disbursed on the 1st and 16th of each month for services rendered the previous month. However, Bumper Man deducts specific amounts before disbursing the funds to the franchisee.
The deductions include the Continuing Service Fee, which is a standard fee franchisees pay to the franchisor for ongoing support and use of the Bumper Man system. Additionally, Bumper Man will deduct any other amounts that the franchisee owes to them under the Franchise Agreement. This could include fees for supplies, marketing materials, or other services provided by Bumper Man.
It is important for prospective Bumper Man franchisees to understand all the potential deductions that can be made from their service revenue. Reviewing the Franchise Agreement carefully and seeking clarification on all possible fees and deductions is crucial to accurately forecast potential earnings and manage finances effectively. Franchisees should also be aware that they are ultimately responsible for ensuring their customers pay for the services provided, even though Bumper Man handles the billing and collections.