For a Bumper Man franchise, what is included in 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 Bumper Man's 2025 Franchise Disclosure Document, 'Gross Sales' is defined as the total selling price of all Designated Services and all income of every other kind and nature related to the Bumper Business. This includes income received in the form of cash, cash equivalents, or credit, regardless of whether the payment has been collected for credit transactions.
For a Bumper Man franchisee, this means that all revenue generated from services and other income streams associated with the business contribute to the Gross Sales figure. This is a crucial metric because it is often used to calculate royalty fees or other payments owed to the franchisor. The FDD specifies that in the case of franchisor-implemented promotional discounts where franchisee participation is required, the discounted price actually paid by the customer is used to calculate Gross Sales, rather than the original price.
However, the definition of Gross Sales for a Bumper Man franchise does not include amounts collected by the franchisee for performing Designated Services for an individual consumer on a single vehicle at the request of such consumer. This exclusion could significantly impact the total Gross Sales reported, depending on the volume of such individual consumer requests. Franchisees should be aware of this exclusion and its potential impact on their financial obligations to Bumper Man.