For a Bumper Man franchise, what is excluded from the definition of 'Gross Sales'?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
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- "Gross Sales" means the total selling price of all Designated Services and all income of every other kind and nature related to the Bumper Business, whether for cash, cash equivalents, or credit, and regardless of collection in the case of credit. In the case of promotional discounts implemented by Franchisor and for which participation in the promotion is required of Franchisee, the amount actually paid by the customer after the discount for the Designated Services, rather than the original amount, will be considered for purposes of calculating Gross Sales. Gross Sales does not
include amounts collected by Franchisee for performance of the Designated Services for an individual consumer on a single vehicle at the request of such consumer.
Source: Item 6 — OTHER FEES (FDD pages 12–15)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, 'Gross Sales' for the purpose of calculating fees includes the total selling price of all designated services and all income related to the Bumper Man business, whether in cash, cash equivalents, or credit. When Bumper Man implements promotional discounts that franchisees are required to participate in, gross sales will be based on the discounted price actually paid by the customer.
However, the definition of Gross Sales specifically excludes amounts collected by a Bumper Man franchisee for performing designated services for an individual consumer on a single vehicle at the consumer's request. This means that revenue from direct customer repairs is not subject to the continuing service fee.
This exclusion could significantly impact the amount of continuing service fees a franchisee pays to Bumper Man, especially if a large portion of their business comes from individual consumer requests rather than other sources. Franchisees should carefully consider the potential revenue streams in their designated area and how this exclusion might affect their overall profitability.