Does Bumper Man receive material benefits from suppliers based on franchisee purchases or leases?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not derive revenue from your purchases and leases to the extent you purchase or lease products or services from us. We further do not receive material benefits from suppliers based on your purchases or leases. During our 2024 fiscal year, we did not receive any income from franchisees' purchases of products or services or from leases by franchisees. We do not receive any money, rebates, or advertising allowances from approved suppliers. Neither we nor any of our officers owns an interest in any approved supplier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–20)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, Bumper Man does not receive material benefits from suppliers based on franchisee purchases or leases. The FDD states that Bumper Man does not derive revenue from franchisee purchases or leases when franchisees buy or lease products or services from Bumper Man. Furthermore, Bumper Man does not receive money, rebates, or advertising allowances from approved suppliers, and neither Bumper Man nor its officers own an interest in any approved supplier.
However, Bumper Man does require franchisees to purchase certain items from them or approved suppliers. These include Bumper Man tools and equipment, iPads or tablets, software programs, advertising and marketing materials, stationary, and stickers bearing Bumper Man's trademarks. Bumper Man is currently the only approved supplier for Bumper Man tools and equipment, and provides the initial set of tools and equipment on loan to the franchisee. If any of these items are lost or damaged, the franchisee must purchase replacements from Bumper Man or its designated supplier. Upon expiration, termination, or transfer of the Franchise Agreement, the franchisee must return all Bumper Man tools and equipment to Bumper Man.
Bumper Man also requires franchisees to purchase a vehicle that meets specific standards and specifications. Additionally, franchisees must obtain certain insurance policies with specific coverage limits, including a Garage Liability Insurance policy with a minimum $1,000,000 limit, a Garage Keepers Insurance policy with a $50,000 limit per vehicle, and a Commercial Vehicle Insurance policy with a $500,000 combined single limit. These policies must meet certain requirements, such as being rated A+ or better by A.M. Best Company and including a waiver of subrogation provision in favor of Bumper Man.
While Bumper Man does not receive direct financial benefits from suppliers based on franchisee purchases, the requirement that franchisees purchase a substantial portion of their supplies and equipment from Bumper Man or its approved suppliers ensures quality control and uniformity within the Bumper Man system. This also allows Bumper Man to maintain control over its trademarks and trade secrets. Prospective franchisees should be aware of these requirements and factor them into their investment and operating cost calculations.