Does Bumper Man derive revenue from franchisee purchases or leases from them?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not derive revenue from your purchases and leases to the extent you purchase or lease products or services from us. We further do not receive material benefits from suppliers based on your purchases or leases. During our 2024 fiscal year, we did not receive any income from franchisees' purchases of products or services or from leases by franchisees. We do not receive any money, rebates, or advertising allowances from approved suppliers. Neither we nor any of our officers owns an interest in any approved supplier.
We anticipate that the required purchases and leases from approved suppliers will constitute the substantial majority of all purchases by you to establish the Bumper Business, with approximately 80% of your initial investment comprised of required purchases and leases of equipment, tools, vehicle, products, and services. We estimate the up to 1% of your expenditures to operate the Bumper Business will be comprised of required purchases and leases of products and services.
We have no purchasing or distribution cooperatives serving our Bumper Man system, although we retain the right to establish them.
We have not negotiated any arrangements with designated suppliers based upon volume purchase commitments of the Bumper Man system.
We do not provide you with, nor do we receive, any material benefit based upon your use of designated or approved suppliers. However, we may, at our sole option, negotiate system-wide discounts available to Bumper Man franchisees for purchases of tools and supplies from suppliers that you may, but are not required, to use. We reserve the right to disallow you from participation in such discount programs if you fail to comply with the terms and conditions of your Franchise Agreement or the standards.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–20)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, Bumper Man does not generally derive revenue from franchisee purchases or leases. The FDD states that Bumper Man does not receive material benefits from suppliers based on franchisee purchases or leases. During the 2024 fiscal year, Bumper Man did not receive any income from franchisees' purchases of products or services or from leases by franchisees, nor does it receive any money, rebates, or advertising allowances from approved suppliers. Furthermore, neither Bumper Man nor any of its officers owns an interest in any approved supplier.
However, the FDD indicates that required purchases and leases from approved suppliers will constitute the substantial majority of all purchases by a franchisee to establish the Bumper Business. It is estimated that approximately 80% of the initial investment is comprised of required purchases and leases of equipment, tools, vehicles, products, and services. Additionally, up to 1% of expenditures to operate the Bumper Business will be comprised of required purchases and leases of products and services.
While Bumper Man states they do not derive revenue from these purchases, the document also states that they "may, at our sole option, negotiate system-wide discounts available to Bumper Man franchisees for purchases of tools and supplies from suppliers that you may, but are not required, to use." This suggests that while they may not directly profit, they could potentially benefit indirectly through negotiated discounts or other arrangements with suppliers. A prospective franchisee should seek clarification on the nature of these negotiations and any potential benefits Bumper Man receives.