What is the payment frequency for the financed portion of the Bumper Man initial franchise fee?
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, qualified new franchise operators have the option to finance a portion of the initial franchise fee. Specifically, they can finance up to $25,000 of the initial franchise fee, with the remaining portion ($25,000) due upon signing the Franchise Agreement.
The financed amount is repaid through 120 equal semi-monthly installments over a five-year term. The interest rate applied to the financed amount is 10% per annum. This means franchisees will be making payments twice a month for five years to cover the financed portion of the franchise fee plus interest.
It's important to note that the financing is secured by the franchisee's rights, title, and interest in the Franchise Agreement. Defaulting on these payment obligations constitutes a default under the Franchise Agreement, which could lead to termination of the agreement if the default is not cured. This highlights the importance of carefully considering one's financial situation and ability to meet these payment obligations before entering into a Bumper Man franchise agreement.