How are gross sales calculated for a Bumper Man franchise when discounts or refunds are applied?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- (k) Customer Satisfaction and Surveys. Franchisee will participate in all Customer surveys and satisfaction audits as Franchisor may require from time to time. Additionally, Franchisee will participate in any Customer complaint resolution and other programs as Franchisor may reasonably establish for all or part of the System. For any such sales, the amount actually paid by the Customer after the discount or refund is applied and not the advertised price will be considered for purposes of Gross Sales.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, gross sales calculations consider the actual amount paid by the customer after any discounts or refunds are applied. This means that the franchisee's revenue, upon which royalties and other fees are based, is calculated on the net amount received from the customer rather than the original price of the services. This policy applies to all sales where a discount or refund has been given.
This approach to calculating gross sales is fairly standard in the franchise industry, as it aligns the franchisor's interests with the franchisee's ability to attract customers through promotions and resolve customer issues through refunds. It ensures that franchisees are not penalized for using discounts or providing refunds to maintain customer satisfaction and drive sales volume.
However, it is important to note that this applies to discounts or refunds. The franchisee should ensure they understand what constitutes an approved discount or refund within the Bumper Man system to avoid any disputes in royalty calculations. Franchisees must also participate in customer surveys and complaint resolution programs that Bumper Man establishes.
In summary, Bumper Man franchisees benefit from a gross sales calculation method that takes into account the realities of running a customer-focused business, where discounts and refunds are sometimes necessary. This can help to improve customer satisfaction and drive sales volume, which ultimately benefits both the franchisee and the franchisor.