Is Bumper Man obligated to verify the accuracy of franchisee invoices?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
As described in our invoice processing procedures set forth in the Manual, you will send us copies of all customer invoices for bumper repair services you perform for Bumper Man customers. We will bill the customers directly and collect amounts owed according to the invoices you provide. We are not obligated to independently verify your invoices for accuracy or completeness. The invoice submission software requires you to verify that each invoice you submit is true and accurate. We will bill the Bumper Man customers you service directly and collect amounts due as specified in each invoice. If the Bumper Man customer does not pay invoiced amounts when due, we may, at our sole option, attempt to collect such past due amounts, but you are ultimately responsible for ensuring your customers pay invoiced amounts for the services you provide.
We will disburse amounts collected for bumper repair services that you provide during the previous month on the 1st and 16th day of each month based upon the invoices you submit to us, less the Continuing Service Fee and any other amounts due to us under the Franchise Agreement. (Franchise Agreement – Section 4(e)).
If a Bumper Man customer does not meet our standards for creditworthiness, we may decline to process invoices for such customer. You will cooperate with us in collecting past-due amounts and facilitate bringing the Bumper Man customer's account current so that you may resume performing bumper repair services for such Bumper Man customer.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 22–27)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, Bumper Man is not obligated to independently verify the accuracy or completeness of franchisee invoices. Franchisees are required to send copies of all customer invoices for bumper repair services to Bumper Man, who will then bill the customers directly and collect payments based on those invoices. The invoice submission software requires franchisees to verify that each invoice they submit is true and accurate.
Bumper Man will disburse amounts collected for bumper repair services provided by the franchisee during the previous month on the 1st and 16th day of each month, after deducting the Continuing Service Fee and any other amounts owed to Bumper Man under the Franchise Agreement. If a Bumper Man customer does not pay the invoiced amounts when due, Bumper Man may attempt to collect the past due amounts, but the franchisee is ultimately responsible for ensuring that customers pay for the services provided.
If a Bumper Man customer does not meet Bumper Man's standards for creditworthiness, Bumper Man may decline to process invoices for that customer. In such cases, the franchisee will need to cooperate with Bumper Man in collecting past-due amounts and facilitating the customer's account being brought current so that the franchisee can resume providing bumper repair services for that customer. This places the onus on the franchisee to ensure the accuracy of their invoices, as Bumper Man relies on the franchisee's verification and does not independently confirm the details.