What financial information is a Bumper Man franchisee required to provide to the franchisor?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
le and necessary costs and expenses related to such examination will be paid by Franchisee (including, without limitation, reasonable accounting and attorneys' fees). Franchisee will immediately pay Franchisor upon demand any deficiency in the Continuing Service Fee and all Non-Reported Designated Services Fees, plus late fees as specified in Section 4. These remedies will be in addition to any other remedies Franchisor may have at law or in equity.
(c) Financial Reports. Franchisor reserves the right to require Franchisee to provide quarterly and annual unaudited profit and loss and source and use of funds statements and a balance sheet as of the end of such fiscal year. Franchisor also reserves the right to require Franchisee to deliver any other financial data, tax statements or other financial reports that Franchisor may reasonably periodically request, in the form, manner, and frequency requested.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, Bumper Man reserves the right to request several types of financial reports from its franchisees. Specifically, Bumper Man can require franchisees to provide quarterly and annual unaudited profit and loss statements, source and use of funds statements, and a balance sheet as of the end of each fiscal year. These reports give Bumper Man insight into the financial performance and stability of the franchise.
In addition to these regular reports, Bumper Man also has the right to request any other financial data, tax statements, or financial reports that it may reasonably request periodically. The frequency, form, and manner of these requests are determined by Bumper Man. This broad clause allows Bumper Man to gather additional financial information as needed for various purposes, such as assessing the overall health of the franchise system or evaluating a franchisee's compliance with financial obligations.
To ensure accuracy and accountability, Bumper Man requires that each financial report be signed or otherwise verified by the franchisee, confirming that the data, statements, and reports are true, accurate, and complete. Furthermore, if the franchisee is a business entity, the franchisee will provide Bumper Man with such financial information as Bumper Man may periodically request from the franchisee and each principal, including copies of annual financial statements or tax returns.