How does Bumper Man determine the amount of the Continuing Service Fee and other periodic fees?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
| Initial Franchise Fee: | $50,000 | | Continuing Service Fee: | 25% of Gross Sales | | Late Fee: | $150 per Late Notice Issued | | Non-Reported Designated | 15% of Gross Sales | | Services Fee: | |
- (e) Remittances. The Continuing Service Fee and any other periodic fees required by this Agreement will be due and payable each month based on the Gross Sales for the preceding month. Each month, Franchisor will invoice Customers serviced by Franchisee for the Designated Services and any Products provided. Each month, after deduction of all appropriate fees and charges, including without limitation (i) the Continuing Service Fee; (ii) any note payments; (iii) Transfer Fee; (iv) charge-backs on invoices that are disputed by the Customer, inaccurate, incomplete or pastdue; (v) any advances made to Franchisee by Franchisor; and (vi) Non-Reported Designated Services Fees, Franchisor will disburse to Franchisee the remaining balance of invoiced amounts for the preceding month on the 1st and 16th days of the following month. In the event the 1st or 16th day of the month falls on a Saturday or Sunday, Franchisor will disburse such funds to Franchisee on the following Business Day.
- (f) Reports. Franchisee must submit the Gross Sales daily via Franchisor's Intranet system or through other electronic data interfaces that Franchisor may require from time to time. Franchisee will provide the information requested by Franchisor from time to time regarding Gross Sales of the Bumper Business, including verifying the accuracy of the Gross Sales figure by midnight (Central Time) on the Business Day preceding the 1 st and 16th of each calendar month. Franchisee must submit to Franchisor all reports with respect to the operation of the Bumper Business during the preceding calendar month by the fifth day of the following such month (or such other date specified by Franchisor) and in the form and content as Franchisor periodically prescribes. The reports
- (vv) "Non-Reported Designated Services Fee" means the fee set forth in the Summary Page that Franchisee will pay, in addition to the Continuing Service Fee, for all Designated Services performed but not reported to Franchisor in accordance with the Standards set forth in the Manual and the terms and conditions of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the Continuing Service Fee is 25% of Gross Sales. This fee, along with other periodic fees, is due monthly, based on the Gross Sales of the preceding month. Bumper Man will invoice customers for services and products, and after deducting fees such as the Continuing Service Fee, note payments, transfer fees, charge-backs, advances to the franchisee, and Non-Reported Designated Services Fees, the remaining balance will be disbursed to the franchisee on the 1st and 16th of the following month. If these dates fall on a weekend, disbursement occurs on the next business day.
Franchisees are required to submit their Gross Sales daily through Bumper Man's Intranet system or other electronic interfaces. They must also verify the accuracy of these figures by midnight (Central Time) on the business day preceding the 1st and 16th of each month. Additionally, franchisees must submit monthly reports detailing the operation of their Bumper Business by the fifth day of the following month, or another date specified by Bumper Man. These reports must include information about Gross Sales and other operational details as required by Bumper Man.
In addition to the Continuing Service Fee, there is a Non-Reported Designated Services Fee, which is 15% of Gross Sales. This fee is applied to all Designated Services performed but not reported to Bumper Man, according to the standards set in the Manual and the franchise agreement. The franchisee is responsible for ensuring accurate and timely reporting to avoid these additional fees. The initial franchise fee is $50,000 and a late fee of $150 is charged per late notice issued.