What determines if a Bumper Man franchisee is considered a 'qualified candidate' for financing?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 10 FINANCING*
We do not offer, directly or indirectly, any financing arrangements to any franchisee, except for a portion of the initial franchise fee to qualified franchisee operators as discussed below. We will not guarantee any franchisee's note, lease, or other obligation. We do not have any past or present practice, or any intention, to sell, assign or discount to any third party any note, contract, or other instrument you execute.
New franchise operators who purchase a new Bumper Man franchise and who meet our current credit criteria may pay us half of the initial franchisee fee upon the execution of the Franchise Agreement and pay the remaining half (up to $25,000) in 120 equal semi-monthly installments during a five-year term at an interest rate of 10% per annum, secured by your right, title and interest in the Franchise Agreement. Default of your payment obligations under the note constitutes a default under the Franchise Agreement for which we may terminate the Franchise Agreement if you fail to cure your default of your payment obligat
Source: Item 5 — INITIAL FEES (FDD page 12)
What This Means (2025 FDD)
According to the 2025 Bumper Man FDD, Bumper Man does not offer direct or indirect financing arrangements to franchisees, except for a portion of the initial franchise fee to qualified franchisee operators. To be considered a 'qualified franchisee operator' for this limited financing, new franchise operators who purchase a new Bumper Man franchise must meet Bumper Man's 'current credit criteria'.
If a new Bumper Man franchisee meets the credit criteria, they may pay half of the initial franchisee fee upon signing the Franchise Agreement. The remaining half (up to $25,000) can be paid in 120 equal semi-monthly installments over a five-year term. This is subject to an annual interest rate of 10%, secured by the franchisee's rights and interests in the Franchise Agreement.
It's important to note that defaulting on these payment obligations constitutes a default under the Franchise Agreement. This could lead to termination of the Franchise Agreement if the franchisee fails to correct the payment default. The FDD does not specify the exact credit criteria that Bumper Man uses to determine eligibility for this financing. A prospective franchisee should inquire directly with Bumper Man about the specific requirements to qualify for this financing option.