Does Bumper Man receive money, rebates, or advertising allowances from approved suppliers?
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.
We anticipate that the required purchases and leases from approved suppliers will constitute the substantial majority of all purchases by you to establish the Bumper Business, with approximately 80% of your initial investment comprised of required purchases and leases of equipment, tools, vehicle, products, and services. We estimate the up to 1% of your expenditures to operate the Bumper Business will be comprised of required purchases and leases of products and services.
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 any money, rebates, or advertising allowances from its approved suppliers. The FDD also states that neither Bumper Man nor any of its officers owns an interest in any approved supplier. During the 2024 fiscal year, Bumper Man did not receive any income from franchisees' purchases of products or services or from leases by franchisees.
This arrangement is favorable for franchisees because it suggests that Bumper Man's motivations for supplier approval are not driven by financial incentives. Instead, Bumper Man claims that it controls the purchase of items to assure protection of their trademarks, trade secret rights, and for quality control and uniformity of products and services within the Bumper Man system.
However, the FDD indicates that required purchases and leases from approved suppliers will constitute the substantial majority of all purchases to establish the Bumper Business, with approximately 80% of the initial investment comprised of required purchases and leases of equipment, tools, vehicle, products, and services. Additionally, up to 1% of expenditures to operate the Bumper Business will be comprised of required purchases and leases of products and services. While Bumper Man does not receive direct financial benefits from these purchases, franchisees are still obligated to adhere to the approved supplier system, which could potentially limit their options and flexibility in sourcing products and services.