What happens if a Bumper Man franchisee fails to pay applicable taxes?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- (xiii) Franchisee fails to pay when due any income, withholding, service, sales or any other applicable taxes due on the Bumper Business' operations, unless it is in good faith contesting its liability for such taxes and has effectively stayed the enforcement of liability for such taxes.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, if a franchisee fails to pay income, withholding, service, sales, or any other applicable taxes when due on their Bumper Business operations, it constitutes an event of default. However, there is an exception if the franchisee is in good faith contesting their liability for such taxes and has effectively stayed the enforcement of liability for those taxes.
This means that Bumper Man franchisees are responsible for ensuring all taxes related to their business are paid on time. Failure to do so can lead to the termination of the franchise agreement, unless the franchisee is actively and legally disputing the tax liability.
It is important for prospective Bumper Man franchisees to understand their tax obligations and ensure they have a system in place to manage and pay taxes promptly to avoid potential issues with the franchisor and possible termination of their franchise agreement.