How does Bumper Man define 'Gross Sales' for the purpose of calculating fees?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
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- "Gross Sales" means the total selling price of all Designated Services and all income of every other kind and nature related to the Bumper Business, whether for cash, cash equivalents, or credit, and regardless of collection in the case of credit. In the case of promotional discounts implemented by Franchisor and for which participation in the promotion is required of Franchisee, the amount actually paid by the customer after the discount for the Designated Services, rather than the original amount, will be considered for purposes of calculating Gross Sales. Gross Sales does not
include amounts collected by Franchisee for performance of the Designated Services for an individual consumer on a single vehicle at the request of such consumer.
Source: Item 6 — OTHER FEES (FDD pages 12–15)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, 'Gross Sales' are defined as the total selling price of all Designated Services and all income of every other kind and nature related to the Bumper Business. This includes income received in the form of cash, cash equivalents, or credit, regardless of whether the payment has been collected for credit transactions.
For Bumper Man franchisees, this means that royalty fees are calculated on all revenue generated from the Bumper Man business, encompassing various forms of payment. However, if Bumper Man implements promotional discounts that the franchisee is required to participate in, the gross sales will be calculated based on the discounted price actually paid by the customer.
It is important to note that the definition of Gross Sales for Bumper Man specifically excludes amounts collected by the franchisee for performing Designated Services for an individual consumer on a single vehicle at the request of such consumer. This exclusion could significantly impact the total gross sales figure on which fees are calculated, potentially lowering the amount owed to Bumper Man. Franchisees should ensure they accurately track and report their sales in accordance with this definition to avoid discrepancies or disputes with Bumper Man.