What is the definition of 'Gross Sales' for a Bumper Man franchise?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- (hh) "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. Goss Sales does not include amounts collected by Franchisee for performance of the Designated Services on a single vehicle at the request of an individual consumer.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
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 a Bumper Man franchisee, this means that the Continuing Service Fee of 25% is calculated based on this comprehensive definition of Gross Sales. It is important to note that if Bumper Man implements promotional discounts that require franchisee participation, the Gross Sales will be based on the discounted price actually paid by the customer, rather than the original price of the services.
However, Gross Sales does not include amounts collected by the franchisee for performing Designated Services on a single vehicle at the request of an individual consumer. This exception could impact the overall revenue subject to the Continuing Service Fee, so franchisees should understand the types of services that fall under this exclusion. Understanding this definition is crucial for accurately calculating and reporting Gross Sales, which directly affects the franchisee's financial obligations to Bumper Man.