Is the initial franchise fee for Bumper Man refundable?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
IAL FEES**
You must pay us an Initial Franchise Fee of $50,000 when you sign the Franchise Agreement. Most franchisee operators pay in a lump sum. However, for qualified candidates who meet our credit criteria, we may accept one half ($25,000) of the Initial Franchise Fee upon execution of the Franchise Agreement and the second half of the Initial Franchise Fee at the date we specify in the financing agreement. See Item 10 for an explanation of financing terms.
We will refund part of the Initial Franchise Fee if we determine in our sole discretion that you have not satisfactorily completed initial training, less our costs and expenses in providing training and support to you (which costs and expenses will not exceed $15,000). Other than this single exception, the Initial Franchise Fee is fully earned by us upon receipt and non-r
Source: Item 5 — INITIAL FEES (FDD page 12)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the initial franchise fee of $50,000 is generally non-refundable. However, there is a specific circumstance where a partial refund may be available. If Bumper Man determines, in its sole discretion, that a franchisee has not satisfactorily completed the initial training program, a portion of the initial franchise fee may be refunded.
However, this refund will be reduced by Bumper Man's costs and expenses incurred in providing training and support to the franchisee. The FDD specifies that these costs and expenses will not exceed $15,000. This means that even if a franchisee does not complete training satisfactorily, they may still not receive a full refund of the initial franchise fee, as Bumper Man can deduct up to $15,000 for their expenses.
Outside of this specific instance related to unsatisfactory completion of the initial training program, the initial franchise fee is considered fully earned by Bumper Man upon receipt and is non-refundable. This is a fairly standard practice in franchising, as the initial fee covers the franchisor's initial costs of setting up the franchisee and granting them the rights to operate under the Bumper Man brand.