If a Bumper Man Franchisee transfers the business, what fee must be paid to the Franchisor?

According to the 2025 Bumper Man Franchise Disclosure Document, a franchisee who transfers their Bumper Man business must pay a transfer fee to the franchisor. This transfer fee is calculated as 20% of the purchase price of the Bumper Man business, as specified in the asset purchase agreement between the franchisee and the new owner. This fee compensates Bumper Man for the administrative and legal costs associated with the transfer process.

In addition to the transfer fee, the franchisee may also need to cover the cost of initial training for the new transferee. The transferee may also be required to remit a portion of the purchase price, up to 10% of the Bumper Man business's purchase price, to be held by Bumper Man in a noninterest-bearing account. This amount is held until the franchisee meets all transfer conditions, including transitioning customer accounts to the transferee. Bumper Man can use this held amount to offset any outstanding debts the franchisee owes to Bumper Man.

It is important to note that any transfer without Bumper Man's consent is considered an event of default, making the transfer void. However, Bumper Man's consent does not guarantee the fairness of the terms between the franchisee and the transferee, nor does it guarantee the success of the business under new ownership. The transferee must also meet Bumper Man's current standards for franchisees.