factual

What was the purpose of forming Bumper Man Franchising, Inc.?

Bumper_Man Franchise · 2025 FDD

Answer from 2025 FDD Document

Bumper Man Franchising, Inc., a wholly owned subsidiary of BMI, was formed on April 3, 2000, to grant franchises for the right to develop and operate Bumper Businesses, and the existing Bumper Business operators converted their business opportunities to franchises. Thereafter, BMI and Bumper Man Franchising, Inc. merged on April 1, 2008, and BMI was the surviving company. Since such date, BMI has served as franchisor, granting franchises for the right to develop and operate Bumper Businesses.

Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–11)

What This Means (2025 FDD)

According to Bumper Man's 2025 Franchise Disclosure Document, Bumper Man Franchising, Inc. was formed on April 3, 2000, as a wholly-owned subsidiary of Bumper Man, Inc. (BMI). The purpose of this new entity was to grant franchises for individuals to develop and operate Bumper Businesses. Existing Bumper Business operators then converted their business opportunities into franchises.

Subsequently, on April 1, 2008, BMI and Bumper Man Franchising, Inc. merged, with BMI as the surviving company. Since then, BMI has been the franchisor, responsible for granting franchises to develop and operate Bumper Businesses. This corporate restructuring streamlined the franchising process under a single entity.

In essence, Bumper Man Franchising, Inc. was initially created to focus specifically on franchising the Bumper Man business model, before merging back into the parent company, BMI, to consolidate operations. This type of restructuring is not uncommon in franchising, as companies often separate franchising operations into distinct legal entities for liability and management purposes before potentially merging them back together later on.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.