Does Bumper Man offer direct or indirect financing arrangements to franchisees?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 10 FINANCING*
We do not offer, directly or indirectly, any financing arrangements to any franchisee, except for a portion of the initial franchise fee to qualified franchisee operators as discussed below. We will not guarantee any franchisee's note, lease, or other obligation. We do not have any past or present practice, or any intention, to sell, assign or discount to any third party any note, contract, or other instrument 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 obligations under the note.
Summary of Financing Offered to Franchisee Operator
| Financing Term | Description |
|---|---|
| Amount financed | $25,0000 |
| Source of Financing | Bumper Man, Inc. |
Source: Item 10 — FINANCING (FDD pages 21–22)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, Bumper Man does not typically offer direct or indirect financing arrangements to franchisees. However, new franchise operators who meet Bumper Man's credit criteria may be eligible to finance a portion of the initial franchise fee.
Specifically, qualified new Bumper Man franchisees can finance half of the $50,000 initial franchise fee, up to $25,000. This financing is provided by Bumper Man, Inc. The franchisee is required to make a down payment of $25,000, which represents the other half of the initial fee.
The financed amount is repaid in 120 equal semi-monthly installments over a five-year term. Bumper Man charges an annual interest rate of 10% on the financed amount. The Franchise Agreement secures the franchisee's payment obligations, and failure to meet these obligations can result in the termination of the Franchise Agreement.