factual

What determines the collectable amount of transfer fees for a Bumper Man franchise?

Bumper_Man Franchise · 2025 FDD

Answer from 2025 FDD Document

Transfer fees are collectable only to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.

Source: Item 22 — CONTRACTS (FDD page 45)

What This Means (2025 FDD)

According to Bumper Man's 2025 Franchise Disclosure Document, the collectable transfer fees are determined by the franchisor's reasonable estimated or actual costs in completing the transfer. This means that Bumper Man can only charge a transfer fee that reflects the expenses they incur during the transfer process.

This provision is particularly relevant in Washington state, as the disclosure specifically addresses franchise agreements within that jurisdiction. It ensures that Bumper Man franchisees in Washington are not charged excessive or arbitrary transfer fees. Instead, the fees must be tied to the franchisor's actual costs.

For a prospective Bumper Man franchisee, this information is crucial for understanding the potential costs associated with transferring their franchise. It provides a degree of protection against unreasonable fees, ensuring that the transfer fees are justifiable and transparent. Franchisees should request a detailed breakdown of these costs from Bumper Man to ensure compliance with this requirement, especially if they are operating in Washington.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.