What is the 'Non-Reported Designated Services Fee' that a Bumper Man franchisee might have to pay?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
marizes certain provisions of the Franchise Agreement to which it is attached. In the event of a conflict in the terms of the Summary Page and the Franchise Agreement, the terms of the Franchise Agreement will control.
| Effective Date: | |
|---|---|
| Designated Area: | |
| Initial Franchise Fee: | $50,000 |
| Continuing Service Fee: | 25% of Gross Sales |
| L |
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, a franchisee may be subject to a 'Non-Reported Designated Services Fee'. This fee applies when a franchisee performs 'Designated Services' but fails to report these services to Bumper Man, as required by the standards outlined in the franchise's manual and agreement.
The specific amount of this fee is detailed in the Summary Page of the FDD. The document states that the 'Non-Reported Designated Services Fee' is 15% of gross sales. This is in addition to the continuing service fee, which is 25% of gross sales.
This fee serves as a penalty for non-compliance with Bumper Man's reporting procedures. It incentivizes franchisees to accurately and transparently report all services performed. Franchisees should ensure they understand the reporting requirements detailed in the Bumper Man manual to avoid incurring this additional expense. The franchisor may also conduct audits, and if the franchisee is found to have underreported gross sales by 1.25% or more, the franchisee will be responsible for covering the costs and expenses of the audit.