Regarding Bumper Man's financial statements, what is the potential impact of the estimates and assumptions made by management?

According to Bumper Man's 2025 Franchise Disclosure Document, the financial statements' preparation requires management to make estimates and assumptions that affect the reported amounts and disclosures. The FDD states that the actual results for Bumper Man could differ from those estimates. This is a standard disclosure in audited financial statements.

For a prospective Bumper Man franchisee, this means that the financial performance represented in the financial statements involves some level of uncertainty. While the financial statements are audited by an independent CPA, Kyle E. Patton, and presented fairly in accordance with U.S. generally accepted accounting principles, the use of estimates introduces a degree of variability. For example, Bumper Man's management makes estimates regarding the allowance for doubtful accounts, which totaled $159,129 at December 31, 2024; $129,645 at December 31, 2023; and $120,787 at December 31, 2022. These estimates could change.

Potential franchisees should understand that these figures are not guarantees of future performance. It is important to conduct thorough due diligence, possibly including consulting with a financial advisor, to assess the reasonableness of these estimates and their potential impact on the financial viability of a Bumper Man franchise.