How does Bumper Man disburse invoiced amounts to the franchisee after deducting fees?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
g Service Fee paid by Franchisee during the Renewal Term, if applicable, will be as set forth in the franchise agreement executed by Franchisee pursuant to Section 3(b)(iv).
- (d) Other Fees. Franchisee must pay such other fees or amounts described in this Agreement, including without limitation any Non-Reported Designated Services Fees.
- (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
Franchisor may require include, without limitation, the following information for the preceding Reporting Period:
- (i) if requested by Franchisor, copies of Franchisee's most recent annual tax returns and any financial statements and monthly balance sheets and statements of profits and losses prepared by Franchisee in the ordinary course of operation of the Bumper Business; and
- (ii) if requested by Franchisor to verify Franchisee's Gross Sales, all such books and records as Franchisor may require.
- (g) Electronic Transfer of Funds.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, franchisees receive the remaining balance of invoiced amounts after several deductions. Each month, Bumper Man invoices customers for services and products provided by the franchisee. After invoicing, Bumper Man deducts fees and charges, including the Continuing Service Fee, note payments, Transfer Fee, charge-backs on disputed, inaccurate, incomplete, or past-due invoices, any advances made to the franchisee, and Non-Reported Designated Services Fees. The Continuing Service Fee is listed on the summary page as 25% of Gross Sales.
Following these deductions, Bumper Man disburses the remaining balance to the franchisee on the 1st and 16th days of the following month. If either of these dates falls on a weekend, the disbursement occurs on the following business day. Franchisees must also submit their Gross Sales daily via Bumper Man's Intranet system or other electronic data interfaces and verify the accuracy of the Gross Sales figure by midnight (Central Time) on the business day preceding the 1st and 16th of each calendar month.
Additionally, franchisees must sign an electronic transfer of funds authorization, allowing Bumper Man to disburse funds via electronic transfer to the franchisee's designated bank account. The franchisee is responsible for any service charges, penalties, fines, or other similar expenses associated with this transfer. This process ensures that Bumper Man franchisees receive their entitled payments after all applicable fees and deductions are accounted for, providing a structured approach to financial transactions between the franchisor and franchisee.