Will Bumper Man guarantee any franchisee's note, lease, or other obligation?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 10 FINANCING*
We do not offer, directly or indirectly, any financing arrangements to any franchisee, except for a portion of the initial franchise fee to qualified franchisee operators as discussed below. We will not guarantee any franchisee's note, lease, or other obligation. We do not have any past or present practice, or any intention, to sell, assign or discount to any third party any note, contract, or other instrument you execute.
New franchise operators who purchase a new Bumper Man franchise and who meet our current credit criteria may pay us half of the initial franchisee fee upon the execution of the Franchise Agreement and pay the remaining half (up to $25,000) in 120 equal semi-monthly installments during a five-year term at an interest rate of 10% per annum, secured by your right, title and interest in the Franchise Agreement. Default of your payment obligations under the note constitutes a default under the Franchise Agreement for which we may terminate the Franchise Agreement if you fail to cure your default of your payment obligat
Source: Item 10 — FINANCING (FDD pages 21–22)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, Bumper Man does not offer to guarantee any franchisee's note, lease, or other obligation. However, Bumper Man does offer financing arrangements to qualified franchisee operators for a portion of the initial franchise fee.
Specifically, new Bumper Man franchise operators who meet the franchisor's credit criteria may finance half of the initial franchise fee. The franchisee would pay $25,000 as a down payment, which represents one half of the $50,000 initial fee. The remaining half, up to $25,000, can be financed through Bumper Man, Inc.
This financed amount is paid in 120 equal semi-monthly installments over a five-year term. The interest rate on this financing is 10% per annum, and it is secured by the franchisee's rights, title, and interest in the Franchise Agreement. It is important to note that defaulting on these payment obligations constitutes a default under the Franchise Agreement, which could lead to termination of the agreement if the default is not cured.