What is the maximum amount of the initial franchise fee that Bumper Man will finance?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
rument 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 may finance up to $25,000 of the initial franchise fee for new franchise operators who meet their credit criteria. This financing arrangement is not available to all franchisees; it is contingent on meeting Bumper Man's creditworthiness standards.
If a prospective franchisee qualifies for financing, they are required to pay half of the initial franchise fee upfront, which amounts to $25,000, given that the total initial fee is $50,000. The remaining balance, up to $25,000, can be financed directly through Bumper Man, Inc.
The repayment of the financed amount is structured over a five-year term, with 120 equal semi-monthly installments. An annual interest rate of 10% is applied to the outstanding balance. The Franchise Agreement secures this financing, meaning that defaulting on the payment obligations can lead to the termination of the Franchise Agreement. This condition underscores the importance of franchisees maintaining consistent and timely payments.
While direct financing from a franchisor is not uncommon, the terms and conditions can vary significantly. Prospective franchisees should carefully evaluate the interest rate, repayment schedule, and the implications of default before entering into such an agreement. It is also advisable to compare these terms with those offered by third-party lenders to ensure the most favorable financing option.