When is the insurance payment due for a Bumper Man franchise?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
| To Whom | ||
|---|---|---|
| Type of | Method of | |
| Amount | When Due | Payment is to |
| Expenditure | Payment | be Made |
| $50,000 | Lump sum Upon signing Franchise Agreement | Us |
| Initial Franchise Fee | ||
| (1) | ||
| $15,000 - $40,000 | As arranged Monthly payments over the life of the finance contract unless purchased outright (see note 5) | Lender, Dealership or Seller |
| Truck with Tonneau | ||
| Cover or Camper | ||
| Shell (2) | ||
| Computer $750 - $1,500 | As arranged As arranged | Vendor |
| Hardware, Software | ||
| (3) | ||
| $2,000 - $4,000 | As incurred As arranged | Transportation, Service, and Lodging Providers |
| Training-related | ||
| Expenses (4) | ||
| Telephone and $75 - $300 | As incurred Monthly | Vendors |
| Mobile Phone | ||
| $1,700 - $3,000 | As arranged As arranged; | Insurance |
| before opening | Broker |
Source: Item 6 — OTHER FEES (FDD pages 12–15)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, insurance payments, which range from $1,700 to $3,000, are due as arranged with the broker before opening the franchise. This means a prospective franchisee needs to budget for this expense and ensure payment arrangements are made with the insurance broker to secure coverage prior to commencing operations.
The FDD specifies that the payment amount and schedule are 'as arranged,' indicating that franchisees have some flexibility in negotiating payment terms with their insurance broker. However, the critical requirement is that insurance coverage must be in place before the Bumper Man franchise begins operations. This protects both the franchisee and the franchisor from potential liabilities.
It is common practice in franchising for insurance payments to be required before opening to ensure that the business is protected from day one. Franchisees should confirm with Bumper Man and their insurance broker the specific payment schedule and acceptable forms of payment to avoid any delays in obtaining necessary coverage.