Is the Bumper Man franchisee responsible for service charges related to electronic funds transfers?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) Electronic Transfer of Funds. Upon execution of this Agreement and at any time thereafter as Franchisor may require, Franchisee must sign the electronic transfer of funds authorization attached to this Agreement as Exhibit C, and all other documents and instruments necessary to permit Franchisor to disburse by electronic funds transfer to Franchisee's designated bank account the remaining balance of invoiced amounts after deduction of the Continuing Service Fee and any other amounts owed to Franchisor or its Affiliates. Franchisee is responsible for any service charges, penalties, fines, or other similar expenses associated with the transfer of funds described herein.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, the franchisee is responsible for service charges related to electronic funds transfers. Specifically, upon the execution of the franchise agreement, the franchisee must sign an electronic transfer of funds authorization, allowing Bumper Man to disburse funds electronically to the franchisee's bank account after deducting fees and amounts owed.
The franchisee bears the responsibility for any service charges, penalties, fines, or other similar expenses associated with these fund transfers. This means that if the bank charges a fee for the electronic transfer, that cost is passed on to the franchisee, reducing the net amount they receive from Bumper Man.
This arrangement is fairly common in franchising, as it streamlines payment processes. However, it's important for prospective Bumper Man franchisees to factor in these potential charges when budgeting and forecasting their cash flow. Understanding the frequency and amounts of these charges will help in accurately assessing the profitability of the franchise.