What portion of the initial franchise fee can qualified Bumper Man franchisees finance?
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 may finance a portion of the initial franchise fee. Specifically, Bumper Man may finance up to $25,000 of the initial franchise fee. This financing option is available to those who meet Bumper Man's credit criteria.
To take advantage of this financing, the franchisee must make a down payment of $25,000, which represents one-half of the total $50,000 initial franchise fee. The remaining half, up to $25,000, can be financed directly through Bumper Man, Inc.
The repayment terms involve 120 equal semi-monthly installments over a five-year period. Bumper Man charges an annual interest rate of 10% on the financed amount. The Franchise Agreement secures the franchisee's obligation to repay the loan, meaning that defaulting on payments can lead to the termination of the Franchise Agreement.