How does Bumper Man recognize revenue as of January 1, 2021?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
As of January 1, 2021, revenue is recognized when control of the promised services is transferred to the Company's customers, in an amount that reflects the consideration that it expects to be entitled to in exchange for those services. The amount and timing of revenue recognition varies based on the nature of the services provided and the terms and conditions of the customer contract.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, as of January 1, 2021, Bumper Man recognizes revenue when control of the promised services is transferred to its customers. The revenue amount reflects the consideration Bumper Man expects to receive in exchange for those services.
For a prospective Bumper Man franchisee, this means that the company's financial statements, which may be reviewed as part of due diligence, will reflect income at the point when services are rendered and control is transferred to the customer. This is a standard accounting practice.
The timing and amount of revenue recognition can vary depending on the specific services provided and the terms outlined in the customer contracts. Franchisees should understand that revenue recognition policies can impact the reported financial performance of Bumper Man, and it's important to consider this when evaluating the franchise opportunity.