Can Bumper Man modify the insurance requirements for franchisees?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
e, TX, 75181.
As of the issuance date of this disclosure document, you are required to obtain the following insurance policies: (1) Garage Liability Insurance policy with a minimum each occurrence policy limit of $1,000,000; (2) Garage Keepers Insurance policy with a required limit per vehicle of $50,000; and (3) Commercial Vehicle Insurance policy with a combined single policy limit of $500,000. You must provide certificates of insurance, copies of insurance and other related documentation that we may request evidencing that you have the required insurance prior to beginning operation of your Bumper Business, annually upon the renewal of each policy and in the event of any change to any policy. We reserve the right to modify the insurance requirements at any time, and any such modifications will be described
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–20)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, Bumper Man retains the right to modify the insurance requirements for franchisees at any time. Any such modifications will be described in the Bumper Man Manual.
As of the FDD's issuance date, franchisees are required to obtain specific insurance policies. These include a Garage Liability Insurance policy with a minimum limit of $1,000,000 per occurrence, a Garage Keepers Insurance policy with a required limit of $50,000 per vehicle, and a Commercial Vehicle Insurance policy with a combined single limit of $500,000. Franchisees must provide certificates of insurance and related documentation before beginning operations, annually upon renewal, and in the event of any policy changes.
This provision gives Bumper Man significant flexibility to adjust insurance requirements based on market conditions, changes in legal requirements, or their own risk assessment. For a prospective franchisee, this means that the initial insurance costs and coverage levels could change over the term of the franchise agreement. It is important to regularly review the Bumper Man Manual for any updates to the insurance requirements and to factor in the potential for increased insurance costs when evaluating the financial viability of the franchise.