What financial information must a Bumper Man franchisee provide to the franchisor?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- (ii) Franchisee will disclose to Franchisor all Principals holding any Equity Interests in Franchisee. Franchisee will provide Franchisor with such financial information as Franchisor may periodically request from Franchisee and each Principal, including copies of annual financial statements or tax returns.
- (iii) Each Principal will execute and deliver to Franchisor a Guaranty and Undertaking of Obligations in the form attached hereto as Exhibit B. Any spouse or relative of Franchisee who Franchisor has authorized to perform any obligations relating to the Bumper Business will also execute and deliver to Franchisor a Guaranty and Undertaking of Obligations.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, as a franchisee, if you operate as a business entity, you will need to provide certain financial information to Bumper Man. Specifically, you must disclose all Principals holding any Equity Interests in your franchise. Furthermore, you are required to provide Bumper Man with financial information periodically, which may include copies of annual financial statements or tax returns from both the franchisee and each Principal involved in the business.
This requirement allows Bumper Man to monitor the financial health and stability of its franchisees and their key stakeholders. By understanding the financial standing of the franchisees and their Principals, Bumper Man can assess the risk associated with each franchise location and ensure that franchisees have the resources necessary to operate the business effectively. This also helps Bumper Man ensure that the Principals are committed to the business through a Guaranty and Undertaking of Obligations.
For a prospective Bumper Man franchisee, this means being prepared to share detailed financial records with the franchisor on a regular basis. It is essential to maintain accurate and up-to-date financial statements and tax returns to comply with this requirement. Additionally, franchisees should be aware that any changes in the equity interests or financial status of the Principals must be promptly disclosed to Bumper Man. This transparency helps foster a strong and trusting relationship between the franchisee and franchisor, which is crucial for the long-term success of the franchise.
While the FDD excerpt specifies the obligation to provide financial information, it does not detail the exact frequency or format of these submissions. A prospective franchisee should clarify these details with Bumper Man during their due diligence. Understanding the specific reporting requirements and timelines will help ensure compliance and avoid any potential issues with the franchisor.